DEGREE PROJECT IN TECHNOLOGY, FIRST CYCLE, 15 CREDITSSTOCKHOLM, SWEDEN 2019

Facilitating an Industry 4.0 Implementation

LOUISE LARSSON

JENNIE NILSSON

KTH ROYAL INSTITUTE OF TECHNOLOGYSCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT

FacilitatinganIndustry4.0ImplementationLouiseLarsson&JennieNilsson

MG115XDegreeProjectinProductRealizationandIndustrialEngineering,FirstCycle

MG110XDegreeProjectinProductionEngineering,FirstCycle

KTHSpring2019|Stockholm,Sweden

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AbstractWeare today facingan industrial revolutioncalled Industry4.0.Earlier in thehumanhistory, we have seen multiple industrial revolutions, but only after they actuallyhappened.Thisisthefirsttimewecanseethatanindustrialrevolutionisonitsway.Withthisknowledge,wehavethechancetoprepareforthislarge‐scaledtechnologicalchangethatwearestandinginfrontof.

Becauseofthe impactthatearlier industrialrevolutionshadonorganizations,wecanassume that Industry 4.0, as well, will impact and change work, tasks and theorganizations themselves; especiallywhen it comes to newhigh‐tech knowledge andskillsthatneedtobelearnt.

Implementation, change, and high‐tech learning, together with a constantly runningproductioncanbestressfulforanyoneinvolved.Forthisreason,thepurposeofthisstudyistocomeupwithsolutionsonhowyoucanfacilitatetheimplementationofIndustry4.0,for employees and in an organizational point of view. We do this by conducting aliteraturestudyaswellasinterviewingorganizationswithintheSwedishmanufacturingindustry.ThestructureoftheanalysisisbuiltuponLewin’sThree‐stageModelofChange.Here,wediscussandpresentsolutionsaccordingtothestageinwhichtheyfitduringthechange process. Additionally, we investigate the concept of gamification as a tool tofacilitatechange.

From our research, we conclude that motivation and engagement are keys in atechnologicalchangeprojectsuchasIndustry4.0.Involvement,transparencyandclarityareimportantaspectstomakeemployeesengagedthroughouttheproject.Additionally,wepresentpracticalsolutionsforhoworganizationscaneducatetheiremployeeswithinIndustry4.0techniques,aswellasincreasetheirmotivationandengagement.

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Keywords: Industry4.0,bigdata,artificial intelligence,augmentedreality,virtualreality,cyber‐physicalsystems, cloud computing, change management, technological change, competence development,motivation,Lewin’sThree‐stageModelofChange,gamification.

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SammanfattningViståridaginförenindustriellrevolutionsomkallasIndustri4.0.Tidigareihistorienharvisettindustriellarevolutionerförstefterattdeinträffat.Detärnuförstagångenvikanseattenindustriellrevolutionärpåväg.Meddennakunskapharviidagenmöjlighetattförberedaossfördenteknologiskautvecklingsomvistårinför.

Pågrundavdetidigareindustriellarevolutionernaochdenstorapåverkansomdeharhaftpåorganisationer,kanviantaattIndustri4.0ocksåkommerförändrajobb,uppgifterochorganisationer–framföralltnärdetkommertilldennyateknologiskakunskapsomnyamaskinerochsystemkommerkrävaavdesomanvänderdem.

Implementering, förändring och en hög nivå av teknologiskt lärande, samtidigt somproduktionenfortfarandekommersnurradygnetrunt,kanvarastressigtförvemsomhelst. Därför syftar detta examensarbete till att ta fram lösningar för hur man kanförenkla implementationen av Industri 4.0, ur ett medarbetarperspektiv och förorganisationensomhelhet.Vigördettagenomenlitteraturstudieochgenomintervjuermed organisationer inom den svenska tillverkningsindustrin. Strukturen på analysenbygger på Lewins trestegsmodell för förändring. Här diskuterar och presenterar vilösningarenligtvilketstegdepassariniunderförändringsprocessen.Vidareutvärderarvigamificationsomettverktygförattunderlättaförändringen.

Dettaarbetekommerframtillattdetviktigasteförattgenomföraettförändringsarbetei denna omfattning är motivation och engagemang från både anställda och ledning.Involvering,transparensochtydlighetärviktigadelarförattgöraanställdaengageradegenom hela projektet. Vidare presenterar vi lösningar för hur man kan utbilda sinaanställda inom Industri 4.0‐tekniker, och även för hur man kan öka motivation ochengagemang.

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Nyckelord: Industri 4.0, big data, artificiell intelligens, augmented reality, virtual reality, cyberfysiskasystem, molnlagring, förändringsledning, teknologisk förändring, kompetensutveckling, motivation,Lewinstrestegsmodellförförändring,gamification.

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AcknowledgementsThisisabachelor’sthesiswrittenattheDepartmentofProductionEngineeringatKTHRoyal Institute of Technology. We would first like to thank our supervisors PerJohansson,LarsWingårdandJannisAngelis,forcontinuoussupportandguidance.Wewouldalsoliketothanktherepresentativesfromthemanufacturingindustrywhoagreedtobe interviewed,andallowedustogainvaluableknowledgeaboutthetechnologicaldevelopment in the Swedishmanufacturing industry: EdvardWilhelms from SandvikCoromant in Gimo, Elisabeth Sjöberg, Tomas Andersson and Per‐Inge Eriksson fromOrkla Confectionery & Snacks in Filipstad and finally Vilhelm Söderberg from VolvoPowertraininKöping.

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GlossaryAGV AutomatedGuidedVehicle

AI ArtificialIntelligence

AR AugmentedReality

CPS Cyber‐physicalSystems

CRM CustomerRelationsManagement

CSR CorporateSocialResponsibility

I4.0 Industry4.0

IIoT IndustrialInternetofThings

IoS InternetofServices

IoT InternetofThings

PDM ProductDataManagement

PIS ProductionInformationSystem

PoC ProofofConcept

VR VirtualReality

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Contents1Introduction......................................................................................................................................................1

1.1Background...............................................................................................................................................1

1.2AimandResearchQuestion...............................................................................................................2

1.3Delimitations............................................................................................................................................2

1.4ResearchMethod....................................................................................................................................2

2Industry4.0.......................................................................................................................................................4

2.1BigDataAnalysis....................................................................................................................................4

2.2ArtificialIntelligenceandMachineLearning.............................................................................5

2.3CyberPhysicalSystems.......................................................................................................................6

2.4CloudComputingandCyberSecurity...........................................................................................6

2.5AugmentedRealityandVirtualReality........................................................................................6

3ChangeManagement.....................................................................................................................................8

3.1Lewin’sModelofChange....................................................................................................................9

3.2TechnologicalChange........................................................................................................................10

3.3LearningandCompetenceDevelopment..................................................................................10

4Gamification...................................................................................................................................................11

5InterviewResults........................................................................................................................................14

5.1VolvoPowertrain................................................................................................................................14

5.2SandvikCoromant...............................................................................................................................16

5.3OrklaConfectionery&Snacks.......................................................................................................20

5.4AnswerstoStructuredQuestions................................................................................................22

6AnalysisandDiscussion...........................................................................................................................23

6.1Current‐stateanalysis.......................................................................................................................23

6.2TheUnfreezingStage.........................................................................................................................24

6.3TheChangeStage................................................................................................................................26

6.4TheFreezingStage..............................................................................................................................30

7Conclusions....................................................................................................................................................32

8RecommendationsforFutureResearch............................................................................................33

References..........................................................................................................................................................34

Appendix‐InterviewQuestions...............................................................................................................37

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1 Introduction

1.1 BackgroundOver the last 200 years, society has gone through considerable technologicaldevelopmentsinallareas.Thefirstindustrialrevolutionoccurredattheendofthe18thcentury, when mechanical processes entered the industries and when the economicstructureofsocietiesstartedtoform.Thesecondrevolutioninvolvedthedevelopmentand the use of electricity, gas and oil, which became the foundation of combustionengines. The third, in the end of the 20th century, brought microprocessors,telecommunicationandcomputers.Theabovedescribedrevolutionsarethefoundationsof modern industry. They all had an impact on the shape of organizations, workenvironmentsaswellastheknowledgethatemployeesneedintheirdailytasks(SentryoSAS,2017).

Today,wearestandingbeforeatechnologicalrevolutionthathascometobecalledtheFourth Industrial Revolution, or Industry 4.0 (I4.0). This revolution represents anextensive technological development within all industries. Industry 4.0 consists ofseveralbuildingblocks,suchasartificialintelligence,machinelearning,cloudcomputing,bigdataanalysisaswellasaugmentedrealityandvirtualreality.Becauseoftheimpactthatearlierindustrialrevolutionshadonorganizations,wecanassumethatI4.0alsowillimplychangesinwork,tasksandtheorganizationsthemselves.Inaddition,thehigh‐leveltechnologyrequiresemployeestoattainnewknowledge,andthechangeitselfrequiresdedicationandmotivationfrombothmanagementandemployees.Forthisreason,akeycomponentoftheI4.0implementationwillbechangemanagement.

  Figure1:The4IndustrialRevolutions

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1.2 AimandResearchQuestionThe aim of this study is to explore Industry 4.0 in the manufacturing industry, andwhether gamification can be used to motivate employees during the Industry 4.0implementation.Withregardstothis,thefollowingresearchquestionisformulated:

Intheemployees’aswellastheorganization’sperspective,howcananIndustry4.0implementationbefacilitated?

Tohelpanswertheresearchquestion,threesub‐questionsareformulated:

o What organizational obstacles do companies face, when going through animplementationofIndustry4.0?

o How shouldan organizationmanagea large‐scale technological changeproject,fromtheemployees’pointofview?

o ArethereanypracticalsolutionsthatcanfacilitatetheIndustry4.0implementation?

1.3 DelimitationsThe scope of this study is limited to the Swedish manufacturing industry. Practicalexamples are taken from different industries that manufacture goods in Sweden.However,conclusionsdrawncanbegeneralizedtobeapplicableinternationallyaswellasinotherindustries.

1.4 ResearchMethodDuetothetheoreticalknowledgeneededtobeabletoanswerthepresentedresearchquestion, thestudy ispartly conductedbya literaturestudy.The focus topics for thisliteraturestudywereIndustry4.0,changemanagement,technologicalchange,leadershipandgamification.ThedatabasesusedtofindliteratureonthetopicswereKTHBPrimo,whichistheKTHLibrarysearchdatabase,GoogleScholarandAIMIJournals.Thesearchwords used were different combinations of the following: Industry 4.0, changemanagement,technologicalchange,leadership,leadingchange,gamification.

KnowledgeaboutIndustry4.0anditsbuildingblockswasimperativetounderstandthecontextinwhichthestudyaimedtoapplygamification,andtounderstandthetechnicalchallengesthatmanufacturingorganizationsfaceduringthistechnologicaldevelopment.Researchonchangemanagementwashelpfultounderstandthechallengesorganizationsarefacedwithwhengoingthroughanykindofchangeproject,andhowtoworkaroundthosechallenges.Thismainlyconcernsmanagement,peopleandleadership.Specifically,theresearchontechnologicalchangebroughtustonoticespecificchallengesthatoccurduringatechnologicalchangeprojectandhowtomanagethose.Lastly,knowledgeaboutgamificationwas imperativeaswell, toenablediscussionandconclusions concerning

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whether the concept canbehelpful in themanufacturing industrybefore, duringandafteranIndustry4.0implementation.

Inaddition,tofindsomeconcreteexamplesoftheIndustry4.0implementationandtheuse of gamification in the manufacturing industry, three interviews with differentorganizationswithintheSwedishmanufacturingindustrywereconducted:

• VolvoPowertrain‐manufacturersoftransmissionelementsfortheVolvoGroup

• SandvikCoromant‐manufacturersofsolidcarbidetools

• OrklaConfectionary&Snacks‐manufacturersofsnacks

The interviewquestionswerebothof semi‐structuredandstructuredcharacter.Theywereconductedwithindividualsineachorganizationthatworkwith,orareotherwiseconcernedwith,eachorganization’sproductionandtechnologicaldevelopmenttowardsIndustry4.0.Theinterviewquestionsmaybefoundintheappendix.

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2 Industry4.0TheconceptofIndustry4.0hasitsrootsintheGermanmanufacturingindustry.ItsmainpurposeistointegratetheInternetofThings(IoT)andtheInternetofServices(IoS)intothemanufacturingenvironment.AnIndustry4.0visionisthatorganizationswithinthemanufacturing industry will create global networks of machines, factories andwarehouses in the formofcyber‐physicalsystems(CPS), thatcommunicateandshareinformationwitheachotherthatimpactstheirfunction.(Gilchrist,2016,p.195)

Another key aspect of I4.0 is that of vertical and horizontal integration. VerticalintegrationreferstotheintegrationofthedifferentIT‐systemswithinanorganizationthatareusedatdifferenthierarchical levels.This includeseverything fromamachinesensor,tosystemsforstrategicplanningonamanagementlevel.HorizontalintegrationreferstotheintegrationofIT‐systemsusedinthedifferentphasesofthesupplychain,such as logistics, production and marketing, i.e. the different functions within theorganization.Horizontal integration includes theentire supplychain,all theway fromsuppliers tocustomers. (TheIndustry‐ScienceResearchAlliance;NationalAcademyofScienceandEngineering,2013,p.20)

Becauseoftheflexibilitythatthesesmartfactorieswillprovidefortheorganization,theimplementation of Industry 4.0 would be useful both in small‐ and large‐scaleorganizations.Theverticalandhorizontalintegrations,combinedwithsmartproducts,alloweasierdecisionmakinganddynamicprocesscontrol.Inpractice,thismeansthatlastminutechangeswillbeeasiertoperform,andmorecustomproductswillbepossibletomanufacture.Italsoenablesmanufacturingofsmallerbatches,thatstillareprofitableand canbemade toorder.Thesepossibilities are revolutionary to themanufacturingindustry,astheycreateopportunitiesforinnovativebusinessmodelsandproposenewwaysofcreatingvalue.(Gilchrist,2016,p.196)

In theirconferencepaper,Armengaudetal.describe Industry4.0as thedigitalizationovertheentireproductlifecycle.TheysuggestthatIndustry4.0focusesondigitalizationoftheentiredevelopmentlifecycle,includingtheproduct’sin‐useandservicephase.Thisway, the organization supports global optimization of all product lifecycle phases. Inaddition,theorganizationwilladdvalueandreducecostsforcustomers,andbeabletoreachquality,emissionandlegislationtargetsmoreeasily.Theorganization’sintegrationoffurthertechnologieswillalsobemoreefficient.Finally,theproductionsystemwillbeincreasingly flexible to allowmore individualized products and quicker responses todeviations.(Armengaud,etal.,2017,pp.3‐14)

2.1 BigDataAnalysisOvertherecentyears,thepossibilityofdatacollectionhasgrown.Thisispartlyduetotheuseofcreditcardsandsimilartracesthatpeople–andevenmachines–leavebehindintheirdailylives.Ofcourse,theinternetfacilitatesthisdatacollection.Atfirst,bigdatawasmainlyusedintheretailindustry,wheninternetshoppingstartedtoexpand.Actors

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withintheindustryrealizedthatinformationaboutpeople'sshoppinghabitswouldbevaluable.Forexample,booksellersinphysicalstorescouldtrackwhichbooksweresoldandwhichwerenot,butaswell,whichbookstheircustomerssearchedfor.Thisway,theindustry’sunderstandingofitscustomersincreaseddramatically.Companiesstartedtoinvestmoneytooptimizetheirwebsitelayouts,tomaketheircustomersmorelikelytomake purchases. They began to see the importance and advantages of reviews andpromotions,inexaminingcustomerhabitsandsimilaritiesbetweengroups.Withallthisdata,themanagementoforganizationscouldmakebetterdecisionsandpredicttrendsmorepreciselyandquickerthaneverbefore.(McAfee&Brynjolfsson,2012,p.4)

Today,itdoesn'tmatterwhatfieldorindustryyouareintounderstandthatthereisvalueinalltheinformationthatisavailabletoyou.Withinmanufacturing,bigdataisusedintheoptimizationofproductionqualityandservice,thereductionofenergyconsumptionandfinallytheimprovementoftheefficiencyofproductionprocesses.Companiesinallindustriescannotaffordtonotcollectandusethedatatheyhave.(Gilchrist,2016,p.208)

Furthermore,it’svaluabletoincreasecustomersatisfactionaswellastheabilitytoadaptquickertotrends,whichinturncreatesvalueforthecompany.(McAfee&Brynjolfsson,2012,p.4)

2.2 ArtificialIntelligenceandMachineLearningWithbigdata,wecollectandstorebigamountsofinformation,andusethisinformationtopredicthabitsandtrends.ArtificialIntelligence(AI)hasitsbaseinbigdata.AIiswhenwe letcomputersuse the informationcollected, tochangeandadaptaccording to thedifferentdatapoints.This,byiteratingoverthesameobjectmanytimes.Thecomputercanlearnandunderstandwhatissupposedtocomenextandwhattheproduct,serviceoranswerissupposedtolooklike.Moreover,thekeyaspectofartificialintelligenceisthatcomputerscientiststeachthecomputer,dependingonthedata,whattodoandhowtoadaptwhentheinformationchanges.Thisway,youcansaythatcomputerscanmakedecisions; but as of today, only decisions that the humanbrainprogrammed them tomake.(Gilchrist,2016,p.57)

AbasicexampleofAIiswhenyouplayagamewheretherearemultiplequestions.Ifyouprovidethewronganswer,thecomputerunderstandsandgivesyouaneasierquestionnexttime.Itadaptsaftertheuser’sbehavior,whichinthiscaseisyourknowledge.

Thehumanbrain is greatbutgetseasily tiredandbored if the task isnot interestingenough.AImakesthecomputer’srolebothmoreimportantandbettersuitedforthekindofworkthatcouldbeconsideredasboring.Whenitcomestomanufacturing,AIwilltakealeadintestingproducts.Italsohaspotentialindifferentkindsoftasksthattodaycouldbeclassifiedasrepetitive.(Gilchrist,2016,p.58)

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2.3 CyberPhysicalSystemsCyberPhysicalSystemsfocusonhowtocollectreal‐timeinformationfromthephysicalworldandconvertandsynchronizeitintothecybercomputationalworld(Bagheri,etal.,2015, p. 1622). This way, systems can collaborate with each other and will becontinuously updated. Manufacturing processes can use data‐accessing anddataprocessingservicesavailableinthecompanycloud,whichwillmaketheprocesseasytofollowforanyoneintheorganization,inreal‐time(Monostori,2014,p.9).

When it comes to the manufacturing industry, the use of advanced analytics andcyberphysical systemswill createa connectionbetweenmachinesand their ability toperformmore collaboratively, effectively and resiliently. Many people think that thistechniquewill be the forefrontwhen it comes to Industry 4.0, because it enables thecollectionandthecloud‐storageofinformation,sothatpeopleindifferentplacesoftheorganizationcanfollowtheproductioninreal‐time.(Bagheri,etal.,p.1622)

2.4 CloudComputingandCyberSecurityManypeopleclaimthatcloudcomputingandcybersecurityaregoingtobethebiggestchallengesinthefutureofIndustry4.0.Acloudsystemisdefinedasanonlinestoragepointforinformation,reachablefromanywhereintheworld.WiththeuseofbigdataandAI,computersanddatabaseswillhavetocollectandstoreagreateramountofdatathaninearlierstagesofhistory.Moreover,theintegrationofsystemswillallowdifferentlevelsandfunctionsinthecompanytoaccesstheinformationquickerandmorefrequently.Asaresult,thecompanywillneedtousemorecloudstorageandmoredata‐drivenservicesfortheirsystems.Theperformanceofcloudtechnologieswillthereforehavetoimproveandincrease.(BostonConsultingGroup,2019:1)

Cybersecurityiswhatwecallthesafetyaroundcloudcomputing.Therewillalwaysbeariskwithhavingvaluableinformationonlineandunderstandingtheriskswhenmakingchangesinthewayofstoringinformationisthereforeessential.Furthermore,developingefficient protection systems and realizing that 100% security cannot in reality beattained, is important as well. All possible weaknesses need to be evaluated, and anendto‐endsecurityplanforthestoredinformationisnecessary.Anattackonthedatacollections can affect a company heavily and can be costly even for large‐scaleorganizations.(BostonConsultingGroup,2019:2)

2.5 AugmentedRealityandVirtualRealityAugmentedreality(AR)isusedtoviewreal‐timeinformationinareal‐timeenvironment.The common application ofAR is through a pair of glasses,where you see theworldaround you, but additionally you can see and send information, for example whenselecting parts in a warehouse. Today, this kind of technology is mainly used inentertainment and marketing applications. It has also been tested and used inproductivity applications in factories, especially for spatial planning and navigationsystems.(Paelke,2015,p.1)

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VirtualReality(VR)enablesvisualizationofvirtualobjectsorenvironments.Forinstance,glassesorlargescreenscanbeusedtoseea3D‐viewofanotherreality.Sofar,VRhasmainly been used in the entertainment industry. Today, this technology is beingdeveloped in different areas, such as in the design and construction of cars, and inarchitecturefordesigningbuildings.Inpractice,thevirtualrealityitselfiscreatedbyacombinationofhardwareandsoftware.(Paelke,2015,p.1)

InthecaseofIndustry4.0,wemainlytalkaboutVRandARaswaystosimplifylearning,or to view places in themanufacturing environment that you cannot physically visit.Moreover,itcanbeusedintheplanningofnewproductionlines,intheconnectionofnewmachinesandintheintroductionofnewproductionorstoragefacilities.Inthesecases,VRhelpstovisualizeandtherebyprovideabetteroverviewwhenplanning.(Kovar,etal.,2017,p.1)

Figure2belowshowsasummaryofalltheIndustry4.0aspectsandbuildingblocks.

  Figure2:Industry4.0buildingblocks

Industry 4.0

Artificial Intelligence

Data analysis

Machine learning

Augmented reality

Virtual reality Vertical 

integration

Horizontal integration

Cyber‐physical systems

Cloud computing

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3 ChangeManagementAn implementation of Industry 4.0 implies a great change within the manufacturingenvironment.Philips stated that companies thatdonotadapt tomajor changewithintheircompetitiveenvironmentcanreceivegreatpenaltiesintheformofdecliningprofits.Ontheotherhand,companiesthatrespondquicklytochangesmaybeabletocontinueuninterrupted growth and even turn the changes to their advantage. For this reason,change management is imperative. Furthermore, Philips identifies three criticalcomponents for a successful organizational change. First, the company needs a newstrategicvision.Second,thecompanyneedsneworganizationalskillstoimplementthestrategicvision.Third,thepeoplewithintheorganizationneedtobedeeplycommittedto the new vision and organizational skills. Otherwise, the change will not happen.(Philips,1983,pp.184‐188)

According toMcKinsey, 70%of organizational change efforts fail (Bucy, et al., 2016).Examplesofpitfalls,theysay,includelackofemployeeengagement,poorornonexistentcross‐functional collaboration as well as lacking accountability and inadequatemanagement support.Theyadd that anorganizational transformation requiresmajorresetsinbehaviorstobesustainable,whichleadershaveproblemsachieving.Continuing,change efforts are 30% more likely to stick when people are genuinely invested(Ewenstein,etal.,2015).

Societytodayischangingatarapidpace.Aneedforflexibilityandinnovationhasneverbeengreater;whetheritisanewtechnology,anupdateofexistingproductsorservicesoranyotherchanges.Changeaffectspeople indifferentwaysand is formanypeoplestressful. Therefore, different kinds of leadership for different types of change andpersonalitiesmaybeneeded.Nomatter the typeofchange, there isa riskofmeetingresistance from the people involved. Change can be drastic and sudden, but if it isexpected, different tools can be used to make it smoother for everyone involved.(Nahavandi,2015,p.303)

An important concept tominimize resistance is the concept of champions of change.Championsofchangeareindividualswithinanorganizationthatvoluntarilyshowgreatengagementduringachangeprocess.Theypromotenewprojects,productsorideas,anddothiswithgreatvisionaryqualitiesandenthusiasm.Changechampionsareespeciallyimportantbecauseoftheirabilitytoinfluenceotherstosupportthechange;theyadopttheprojectsas theirownandadvocate themrelentlessly.Thesechampionscannotbeforcedtobeengaged–theymustfindtheirowncausetowhytheywanttosupporttheidea.(Thompson,etal.,2006)

Kurt Lewin stated that a successful implementation of change can only be conductedwhen the forces for change are stronger than those that resist change. Consequently,leadersneedtoeithermotivate,orreduceandneutralizetheforcesthatresistchange.(Nahavandi,2015,p.304)

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Another key aspect of change management is feedback from managers to theiremployees.Russberg&Angelisdefinethelawofthestrengthofconsequencesasfollows:aconsequencehasthegreatesteffectifitis,intheperspectiveoftheindividual,positive,closeintimeaftertheperformedbehavior,givenandmeaningful.Thisgivestheincentivethatpositivefeedbackfromamanagercouldbeveryeffectiveinorganizationalchange.Angelis & Russberg also state that positive reinforcement is the key to affecting thebehaviorofemployees.(2018,pp.58,64)

3.1 Lewin’sModelofChangeThereareseveralmodelsforleadingchange.Inthisstudywewilluseoneofthemostcommon ones – Lewin’s Three‐stage Model of Change (Nahavandi, 2015, p. 304).AccordingtoNahavandi,Lewinviewshumanbehaviorasadynamicbalance;forcesthatareworkinginopposingdirections.Topushemployeesintherightdirectionduringachangeprocess,itisimportanttoencourageforcesthatworkforimplementingchange,andtorestrainforcesthatworkagainstthechange(Kritsonis,2005,p.1).KurtLewin'sThree‐stageModelofChangeconsistsofthefollowingstages(Nahavandi,2015,p.304):

• theunfreezingstage,• change,• thefreezingstage.

Theunfreezingstagecanbeconducted in threesteps.The firststep is to increasethedriving forces for change. This involves convincing the followers that the change isneeded. The second step is to decrease the negative forces, which can be done bydevelopingandmotivatinganeedforchangeamongfollowers.Thethirdandfinalstepistoengagethefollowersinthechangeprocessandtocooperatewiththemtocreateaplanandstructurethechange.RayWilliams,aconsultantandcoachinleadingchange,statedthat“toembracechange,[employees]mustalsoengageinaprocessthatchangeshowtheythinkaboutthemselves,notjusttheirjobs”.(Nahavandi,p.304)

Thesecondstage is theprocessofchange itself. In thisstage,Kritsonisstates that it’simportanttoencourageeveryoneinvolvedtoviewtheproblemfromnewperspectives(2005,p.2).Shestatesthatmanagementandemployeesneedtoagreethatthestatusquoisnotbeneficial,andthatthechangeisneeded.Here,sheadds,itisimportanttoworktogetherforthechangeandcollectimportantinformation,aswellastoconnecttheviewsofthegrouptoleadersthatalsosupportthechange.Nahavandiaddsthatinthisstage,newpolicies,practicesandskillsneedtobelearned,andthattheleader’sroleistobesupportiveandtocontinuetoemphasizetheimportanceofthechange(2015,p.305).

The last stage, freezing, takesplaceafter thechangehasbeen implemented.Kritsonisstatesthathere,theimportanceisthatemployeesdon'tgobacktotheirearlierbehaviors(2005,p.2).Shestatesthatthepurposeofthisstageistostabilizethechange,andthatthe actual integrations become new routines. Nahavandi adds that the focus in thefreezingstageistousenewskillsfrequently(2015,p.306).Healsostatesthattheleader’s

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role in this stage is to provide resources for training and coaching, aswell as to userewardsystemstocontinuemotivatingtheemployeestolearn.

3.2 TechnologicalChangeAnimplementationofIndustry4.0impliesalarge‐scalechangewithinanorganization.Itaffectsnotonlytheprocesseswithinamanufacturingorganization,buttherolesoftheemployeesaswell.Pisano&Teece(2007,p.281)mentionthatasthepaceoftechnologyspeeds up, an important task is changing the nature of themanagement. During thischangeprocess, leadership isakey factor.Especiallywithina technologicalevolution,leaderscanintroducenewideas,setupgoalsandsub‐goalsaswellasinspireemployeestodeliverinnovationinitiatives.(Hanafi,etal.,2018,pp.1‐2)

In 2016, PwC published the “Global Industry 4.0 Survey”, in which they state thatimplementingI4.0requirestransformationthroughouttheentireorganization.Theyaddthatadigitalcultureneedstobefostered;thatemployeesneedtothinkandactdigital,experimentand learnnewwaysofoperating.Froman interview thatPwCconductedwithsomemanufacturingorganizations,theyidentifiedthemostextensivechallengestobeinternalissuessuchasorganization,leadership,cultureandskills.(PwC,2016,pp.10,17)

An implementation of Industry 4.0will bring smart objects andmachines, aswell asincrease interactionswithandbetweenproducts,machinesandprocesses.Becauseofthishigh‐leveltechnology,theindustrialenvironmentwillchange,andthecompetencerequiredforthenewsystemswillchange.Forthisreason,oneofthekeyfactorsoftheimplementationwillbetoeducatetheemployeesinthenewprocedures,machinesandsystems.Someexamplesarethedemandsfordeeperunderstandingoftheprocesses,andthe use of smart media, such as smart glasses, in everyday work. There is also anincreasedneedforemployeeswithcodingskillsandwithknowledgeaboutcybersecurityandhowtousedifferentmediainasafeway.(Hecklau,etal.,2016,pp.2‐4)

3.3 LearningandCompetenceDevelopmentToimplementatechnologicalchangelikeIndustry4.0,employeeswillneedtointeractwithmorecomplexproductsandsystems.Therefore,newcompetenceswillbeneeded,whichrequireslearningbytrainingandeducation.(Hecklau,etal.,2016,p.4)

Thereare severalmodels to illustrate theprocessof learning.Themost commonandwell‐knownmodel isKolb’sLearningCycle.Kolb claims thatpeoplewill always learndifferently. Some need more concrete, hands on experiences, some more abstractconceptualization, some learn through reflection and some through experimentation.Kolb’sLearningCycleisusedbothforindividuallearningaswellasforlearningingroups.Kolbstatesthattofullylearnandunderstand;youneedtogothroughasetofrules.Thefirstruleisaboutturningactionsandresultsintoexperiences.Thesecondisacompletereflectionabout theexperience, to continue todevelopandcreateaplan for thenextaction.Finally,thekeyistorepeatthisproceduretoimprovetheacquiredskillsalongtheway.(Drejer,2000,p.212)

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4 GamificationTheconceptofgamificationcomesfromtheworldofvideogames.Itsmainideaistousetheelementsofgamedesigninnon‐gamecontexts,servicesandproductstomotivatethedesired behaviors. Gamification has caught the interest of HR professionals andmarketers, i.e. those who are interested in driving motivation and engagement. Thecommon implementation of gamification is to simply add leaderboards, points andbadgestoactivities.However,forgamificationtoworkinpractice,itneedsnotonlytoincludegamescomponentssuchasleaderboardsandbadges,butalsogamedesignitself.(Deterding,2012,pp.14‐16)

In gamedesign,uncountable amountsofpositive reinforcementarepresent.Aplayerreceivesdirectandcontinuousfeedbackforeachactivity,intheformoflights,sounds,movementsandpictures,as,forexample,avisualpointsystem.Thankstothefactthatthesereinforcementsoccurconnectedtocertainactionsandbehaviorsfromtheplayer,theplayerlearnswhatspecificactionsarerewarded.(Russberg&Angelis,p.65)

In the implementation of gamification, it is essential not to forget the organizationalaspect. It is importantwith a greatunderstandingof thebusinessgoals, ofwhatuseractivities that drive value for the business (directly and indirectly), and lastly andunderstandingoftheusersthemselvesandwhatmotivatesthem.Itisalsoimportantthatthe entity being gamified already has some value to the users. If so, gamifying it canincreasemotivationandengagement.Understandingwhytheusersengagewithincertainthingswithintheorganizationhelpstoreachconclusionsondifferentwaystorewardthem.(Deterding,2012,p.17)

Animportantingredientofgamificationisrewards.Wang&Sundefinerewardssystemsasplayermotivatorsaswellascompromisesforeasingdisappointment.Inaddition,theyidentifyeightdifferenttypesofrewards:scoresystems,experiencepoints,virtualitems,resources (wood, stone, additional lives), titles, on‐screen feedback messages, plotanimations&picturesandfinally,unlockingmechanisms.(Wang&Sun,2011,pp.1‐5)

Choustatesthatrewardscanbephysical,emotionalorintellectual.Theserewardsdonotnecessarilyhavetobeintheformofbadges.Themosteffectiverewards,hestates,areboostersthatletpeoplegobackintothesystemand–inthecontextofacomputergame–playmoreeffectively.(Chou,2016,p.70)

Chou presents several gamification techniques that are possible to use in practicalsituations.OneofthemhecallsBeginner’sLuck,whichfocusesontheconceptofcalling.Callingmakespeoplefeelliketheyareuniquelychosentodosomething,thattheyaredestinedto the task. Ifacomputergameplayerreceivesaveryspecialweaponat thebeginningofthegame,heorshewilllikelykeepplayingtobeabletousethatweapon.Chouevaluatesthismetaphorfurther,sayingthatoncetheplayerreceivestheweapon,perhapsheorsheisonlyallowedtoequipitonceheorshedefeatsacertainnumberofenemies.(Chou,2016,p.45)

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AnothergametechniquepresentedbyChouisthatofAppointmentDynamics,whichisatechniquethatharnessesthescarcityoftime.Ingamedesign,appointmentdynamicsusea recurring or formerly declared schedule where users must take desired actions.Appointmentdynamicsformatriggerbuiltaroundtime.ChouexemplifiesthiswiththegarbagetruckthatcomeseveryTuesdaymorning.Becauseofthis,heautomaticallytakesthetrashoutMondayevening.(Chou,2016,pp.74‐75)

PracticalApplicationsofGamificationThere are several examples of practical implementations of gamification. ElizabethLawleystatesthefollowing(Deterding,2012,p.16):

“WhenwesetouttocreateJustPressPlay,anachievementsystemforstudentsingamesandmediaattheRochester InstituteofTechnology,webeganbythinkingaboutthebehaviorswewantedtorewardandencourage,aswellasthe ways in which a game could allow our students to reflect on theiraccomplishmentsandstrengthentheirsenseofcompetenceandprogress.“

Within this achievement system, Lawley introduced an achievement for freshmanstudentstopasstheintroductoryprogrammingcourse,becausethepassratehadonlybeenaround85%.Thisinitiativemotivatedjuniorandseniorstudentstospontaneouslyorganizestudygroups,whichtheyenjoyedsomuchthattheyaskedtorunstudysessionsinthefutureaswell.(Deterding,2012,p.16)

Chou presents some modern examples of practical applications of gamification inenterpriseworkplaces.Hementionsthecustomerrelationsmanagement(CRM)systemSalesforceand itssub‐systemSalesforceMotivation,whichreplacesmanualprocesseswithauser‐friendlysalesapplication.Thisapplicationincludesaprogressbar,ateamleaderboard, a customizable featured challenge aswell as team standings that showswhichteamis in the lead. Italsohasarewardstab,whereemployeescanselect fromvirtualorreal‐lifegoods.Thisway,salesteamscangetreal‐timefeedback,whichhelpsthemtoachievebothshortandlong‐termsalesgoals.(Chou,2018)

AnotherexamplepresentedbyChouisBadgeville,acompanyspecializedingamification,thatcreatedanonlineserviceinwhichenterprisesmayconfigureandcustomizetheirowntaskrelatedgoals.Thesegoalscouldforinstancebecompletingworkrelatedreportsorlevellingupakeyindustryskill.AnenterprisesocialnetworkcalledYammerisalsointegrated, allowing employees’ achievements to be published so that the entireorganizationcanseethem.(Chou,2018)

Yet another example is the business application company SAP and their communitynetwork SCN. Users gain points through contributing and communicating within thenetwork, and employees using the network are indicated with SAP badges. As theiremployeesgainpointsand‘levelup’,itwasdecidedthatratherthangettingafreeT‐shirt,they would donate their points to charity. This has allowed SAP to engage theiremployees’ inherentmotivations of accomplishment and social status, and is a great

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exampleofhowbadges,progressbarsandleaderboards–basicgamemechanics–canbeeffectiveifalignedtoalreadyexistinginherentmotivations.(Chou,2018)

Finally, we present an example of a gamification approach that involved not onlyemployees,butthegeneralpublic.In2009,Volkswageninitiatedthecampaign“TheoryofFun”, inwhich they installedpianostairs inaStockholmsubwaystation,eachstepplayinganotewhenapersonwouldsteponit.Theaimofthiscampaignwastogetmorepeopletousethestairsratherthantheescalator,andtoshowthatpeoplearemorelikelytochangewhentheyhavefun.Image1belowshowsthispiano‐staircase.(DesignoftheWorld,2019)

Image1:Thepiano‐staircaseinStockholm,Sweden(DesignoftheWorld,2019)

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5 InterviewResultsThissectionpresentssomeinformationabouteachorganizationthathasbeensubjecttoourinterviews,aswellasasummaryoftheinterviewsconducted.

5.1 VolvoPowertrainVolvoPowertrainmanufacturespowertraincomponentsfortheVolvoGroup,includingengines,transmissionsanddriveshafts.TheKöpingfactoryspecializesintransmissionelements and has around 1500 employees divided across functions such as productdevelopment,logisticsandproduction.Thefacilityopenedin1856,althoughaspartofanothercompany,andstartedmanufacturingtransmissionelementsfortheautomotiveindustryintheearly20thcentury.Thefactory’scollaborationwithVolvobeganin1926,andVolvopurchasedthefacilityin1942.(VolvoGroup,2012)

VolvoPowertrainstatethattheiremployeesaretheirmostimportantresources,andthattheyvaluediversityandteamwork.Forinstance,thefactoryputsalotofresourcesintodevices that facilitate theiremployees’work, suchas liftingequipment. (VolvoGroup,2012)

Image2:TheVolvoPowertrainfactoryinKöping,Sweden(VolvoGroup,2012)

VolvoPowertrain‐SummaryofInterviewThe Volvo Powertrain factory in Köping (henceforth Volvo) sees big potential for animplementationofIndustry4.0andclaimsit’samusthaveforthefuture.Volvohasnotyet implementedanykindofartificial intelligenceormachine learningbutdoesseeagooduseforthesetechnologies,especiallyforchangingtoolsintheircuttingmachines.Forinstance,theycouldusethemtobeabletochangethetoolswhentheygetwornout,insteadofwhenthemachineshavebeenusedacertainamountoftimes.Evenifthosetechniques haven’t been implemented yet, Volvo has, over the years, invested inmachinesthatarepreparedforI4.0manufacturing. Inaddition, theyarecollaboratingwithdifferentuniversitiesinresearchprojectsaboutI4.0techniques.

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When it comes toVR andAR,Volvohas a teamworkingpart‐timewith this, andhasseveralongoingprojects.Forinstance,theyarebuildingavirtualshowroomwheretheirproductscanbeshown.Additionally,theyhave,andareusingAR‐glassestohelpwithoperatingmachines aswell as component assembly.When it comes toVR,Volvohas3Dscannedtheirfactory.This,togetagoodoverviewovertheproductionenvironmentandtomakedigitizedplansin3D.Theythenusetheseplansastoolsfor investments,development,orimplementationofnewmachinesandlinesintheproduction.

VolvoiscollaboratingwithacompanytakingcareoftheirIT‐security.Theytakecybersecurityveryseriouslybutmentionthatitcansometimesbeanobstacle.Asanexample,whentheyareconnectingpartsoftheirfactoryonlinetoshowtheirsuppliers,thereareproblemswithsharingscreensbecauseofdifferentsecurityreasons.Becauseofthis,itcanbedifficultandtimeconsumingtoworkwith.

Whenitcomestohorizontalintegration,Volvoiscurrentlyintegratinganewsystem.Thisnewsystemwillbeabletocollectdifferentinformationalongtheproductionlineandwillbeabletoconnectwithothersystemsfurtheron.Whenitcomestoverticalintegration,theyhaveanoldersystemwheretheyarebuilding,rebuildingandaddingnewsystemsontopofanother.Volvoclaimsthatthisitisabithardtogetridof,andiftheydo,itwillbecostlyandtimeconsuming.

At Volvo, they have a remanufacturing facility where they can send parts that canpotentiallybereused.Tominimizewaste,theysellleftovermaterialsuchasaluminumandchemicals.

When it comes to the Industry 4.0 implementation, they think thatwewill see a bigchangeinmanufacturingalreadyintheupcomingthreeyears.Aswell,theyclaimthatthey will never be fully finished with an implementation of Industry 4.0, sincedevelopmentthatwillalwaysbemovingforward.

TheorganizationatVolvoinKöpingismadeupoftheproductiondepartmentandthedevelopment department. In the production department they have a productionmanager, management team, areamanagers, sectionmanagers and operators. In thedevelopmentdepartmentitissimilar,butwithfewermiddlemanagers.

Volvo’sproductionisgettingmorecomplexandpreciseforeveryyear.Thisenablesthemtohavefewerpeopleworkingonthelinebutincreasestheirqualityrequirementsandlevel of responsibility. As the production systems and machines will get even morecomplexwithIndustry4.0,oneofthekeychallengeswillbetotrainandteachpeopletogettherightcompetences.However,thesesystemswillalsobeabletoperformcomplextasksautomatically,whichinthelongtermwillmaketheemployees’workeasier.

Before, Volvo had a strategy in which production technicians were responsible forpushingthedevelopmentofI4.0forward.Unfortunately,thedailyproductiontooktoomuch of their time, so it did notwork. Therefore, they are today looking for severalspecialiststoberesponsibleforquestionsregardingI4.0.Oneofthoseisamachine

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engineeringdeveloper,whowillonlyworkwithgettingVolvo internallyreadyfor thefuture,workingwithdigitalization,simulation,PDM‐systemsandotherpartsofIndustry4.0.Further,theyarealsolookingforsomeonetodealwithtransmissionintegrationandelectromobility. This is basically a personwho can create a roadmap on how today’sproductsandproductionneedtogetinlinewiththeonesoftomorrow.Inaddition,theyarelookingatbringingsomeonetoworkwithin‐linequality,seeinghowVolvocanusemoderntoolstoseereal‐timeinformationintheirmanufacturing.

AtVolvotheyhavecuriousanddrivenemployeeswhothinkthesequestionsareexcitingandfun.Volvoclaimsit’suptothemasacompanytogivetheiremployeestherighttoolstoexecutetheirtasks.Theyworkwithchangemanagementintimesofchangeandthinkit’simportanttoletthepeoplewhohavetime,andtherightpeople,drivethoseprojectsforward.

ManyoftheemployeesatVolvohavebeenworkingtherefor20‐30years,andafewhavebeenthereonlyforacoupleofyears.Theysaythatit’sverygoodtohaveamixinages.This,thankstothedifferentmindsetsthatcreateanenvironmentwherealotofideasandsolutionsarise.

Whenitcomestogamification,theyarenotusingthisintheorganization.FromVilhelm’searlierexperiences,thingslikecompetitionsandleaderboardsisfuninthebeginningbutgetsboringintheendifit’stoorepetitive.AtVolvo,employeesareinsteadworkingwithdifferentgoalsdefinedtogetherwiththeirmanagersandhavedevelopmenttalksthreetimesayear.Here,theygetguidanceandtoolstoworkonhowtoreachtheirpersonalgoals.

5.2 SandvikCoromantSandvik Coromant is part of Sandvik Group and manufactures tools and machiningsolutions(SandvikCoromant,2019).TheGimofacilityspecializesintoolsandcementedcarbide inserts. The factory opened in 1951 and has 1500 employees. With its 200AutomatedGuidedVehicles(AGV),andshiftsrunonlywithrobotsandAGVs,theplantishighlyautomated.(SandvikGroup,2017)

In2019,theWorldEconomicForumrecognizedtheGimoproductionunitasanadvancedIndustry4.0facility.Thesitehasbeennamedalighthousesite,meaningthatit“deploysawiderangeofIndustry4.0technologies…whilekeepinghumansandsustainabilityattheheartof innovation”.Theyannounce that the facilityhasraised laborproductivitysignificantly by creating a digital thread through its manufacturing processes. Forinstance, their touchless changeover allows for design patterns to be changedautomatically,evenwhenmachineoperatorsarenotpresent.(SandvikGroup,2019)

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Image3:AGVs(AutomatedGuidedVehicles)atSandvikCoromantinGimo(SandvikGroup,2019)

SandvikCoromant–SummaryofInterviewSandvikCoromant(henceforthSandvik)seesalotofpotentialwhenitcomestoIndustry4.0. They see that it is profitable, and that increased automatization gained from, forinstance, machine learning algorithms, will create new tasks for operators and newpossibilitiesforincreasedproductionvolumeintheformofextendingthefactory.Theydon’tagreewiththefactthatmachinesstealtheemployees’workandpointoutthatit’sonly the repetitive and boring aspects of work that will be replaced, such astransportationofinserts/ordersfromoneoperationtoanother.Thesespecifictaskswillbemademoreefficientthanwhendonemanually,andmachineoperatorswillworkwithsomethingofmorevalue.There isnotasinglecasewhereSandvikhas firedsomeonesimply because they don’t have anything to do. Sandvik believes that a fullimplementationofIndustry4.0willtakethemmaximum10years.

SandvikhasalreadyimplementedsomeaspectsofIndustry4.0.Forinstance,theymakeuseofdataanalysis,althoughmainlyforstatisticalpurposes.Forthis,usestatisticaltoolssuch as CoroPlus™,which is a suite of data analytics solutions developed by SandvikCoromantthemselves,aimedtoimprovethecontrolofproductivityandcosts(SandvikCoromant,2016).Inaddition,SandvikhasaProductionInformationSystem(PIS)thatgathersdata.Forinstance,theycanseehowtheirovensaredoingandwhatRPMtheirgrindingwheelsarerotatingat.AredlampflasheswhentheRPMistoolow,andsothemachineoperatorcaninvestigate.However,thereisroomforimprovement.Currently,Sandvikreplacetheirgrindingwheelsperiodically,independentlyofhowworntheyare.If they would develop predictive maintenance, they would be able to tell when thecomponent needs to be replaced. For instance, a warning could be shown if thecomponentisat80%,ifitusuallybreaksat75%.

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Sandvik also uses cloud computing, throughOneDrive and SharePoint (byMicrosoft).Theyhavelocaldataserversbutarestartingtomoveintothecloudcompletely.Itvarieswhatdataandhowmuchtheystore.ForSandvik,cybersecurityisofgreatimportance.Cloud storage is done within their domain, and employees need to go through aVPNcertificationtoreachthedata.

Regardingverticalandhorizontalintegration,Sandvikhasalittlebitofboth.Theygatherdata at different hierarchal levels (sensor data excluded), and all levels within theorganization can reach it. Regardinghorizontal integration there are systems such asorderandtapsystemsthatareintegrated.

Fromasustainabilityperspective,Sandvikconsiders it important tokeep trackof theproduct life cycle. When tools are worn out, Sandvik buys them back from theircustomers,grindthemdown,separateandrecyclethem.TheirCoroPlus™systemhelpsthemtointegratesensorswithinthetoolsthattheyproduce,whichduringusecollectsinformationabouttemperature,speedanddegreeofwear.Theyhaveideasonhowtomake this idea smarter, so that the margin before the tool needs to be replaced isminimized.

SomeaspectsofIndustry4.0arenotyetimplementedatSandvik,suchasAIandmachinelearning. Since the beginning of the 21st century, Sandvik has been using automatedguidedvehicles(AGVs),intheformoftrucksthatcollectanddeliveritemsautomatically.TheyarenowlookingintousingAItoimprovetheAGVs,sothatthey,forinstance,takeanotheravailablerouteifsomethingisintheway.Currentlytheyjustslowdownifthat’sthe case. Sandvik stresses that a Proof of Concept (PoC) approach is important here,testingwhetherthingsworkandwhethertheywillbeprofitable.

AR andVR are not yet implemented at Sandvik. They are looking intoAR and are incontactwithcompaniesthatcanhelpthemoutwithit.Sandvikmentionsthattheconceptdoesn’tcurrentlyfeelverymature,andthatalotneedstochangebeforeithasachancetobeprofitable.CreatingavirtualmodelofthefacilitycouldforinstancebeusefulfortheAGVtrucksmentionedearlier,sothattheycandeveloptheirroutes.

Regarding the organizational aspect, Sandvik sees some challenges specific for theirorganization,thatwillaffecttheirjourneytowardsIndustry4.0.MostworkersatSandvikareoftheoldergeneration.Thereissomeresistanceinlearningnewsystems,especiallywhencomparingtoyoungergenerations.Mostoftheemployeeswhoarearound50or60yearsoldhaveneverheardofmachinelearningandAI.Sandvikseestheimportanceofcommunication,education,patienceandacceptance.It’snotpossibletosimplythrownewsystemsattheiremployees.Anadditionalchallengeisresources,sinceproductionand volume is always prioritized at Sandvik. Sandvik has an organizational structureinbetween flat and hierarchal, with operators, shift‐leaders, production leaders andmanagers.Thisisdifficulttoavoidinamanufacturingenvironment.

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TheaspectsofIndustry4.0thathavealreadybeenimplementedpartlyatSandvikhasaffectedtherolesoftheiremployees.BeforeI4.0,employeesneededtocreateatonofExcelfilesandsendthosetoeachothertoviewdata.Now,everyonecanseethesamedata,usingdataanalyticssoftwaretovisualize.Before,Sandvikdidn’thaveanygoodwayto look at their production, and managers needed to take notes on paper. Now,productioninformationisupdatedevery10minutes.Thisisimportantforbothmanagersandmachineoperators.Managerscanquicklymoveemployeestoadifferentworkstationifthatstationislagging.Operatorscanmakequickerdecisions.

Sandvikstatesthattomotivatetheiremployeestowardschange,theyfocusontalkingand informing. They let their employees knowwhy they are implementing a certainchange,howitmakestheirworkeasier,whatimprovementsitwillbringandwhatthismeanstothestakeholders.Sandvikhasabottom‐upapproach–theygotothemachineoperatorsandaskthemwhattheyneed.Iftheoperatorssay,forinstance,thatitneedstobeeasiertoseewhenthemachineneedsmaintenance,Sandvikusesthisinformationandattemptstodevelopamachinelearningsolution.

ThedifficultyofmotivatingtheemployeesatSandvikvaries.Everyoneisn’tinfavorofthechange,butiftheyarekeptinformedenough,theyareprettypropulsive.Generally,itseems like the employees think that changes are good. After all, without change, theorganization wouldn’t be around today. When it comes to differences betweengenerationsamongemployees,it’sfairlyequalhowwillingtheyaretochange.However,thetechnicalaspectseemstobemoredifficult for theoldergeneration,asmentionedearlier.

GamificationisnotsopresentintheproductionenvironmentatSandvik.Theypointoutthatimplementingitwouldbeachallenge.Ifyouputup,forinstance,aleaderboard,itbecomesveryvisualandevidentwhoisbetterandwhoisworse.Then,issueswillariseregardingsalariesandwhetherbetterperformingemployeesshouldhavebettersalaries,whichisn’tveryhelpfulfortheirwell‐being.However,creatingteamsthatworktogethertoreachagoalwouldbemuchmoreefficient. It’s importantthatithappensatateamlevelandnotatanindividuallevel.Inanycase,someonewouldneedtotakeinitiativeforsomethinglikethattobeimplemented.

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5.3 OrklaConfectionery&SnacksOrkla Confectionery & Snacks is a part of Orkla, and is the leading snacks‐ andbiscuitmanufacturerinSweden.TheFilipstadfactoryspecializesinsnacksandhas150employees.Atthetimeofitsopeningin1997,thefacilitywasthenorthernEurope’smostmodern factory within its industry. Orkla Confectionery & Snacks has three morefacilities on top of the one in Filipstad, they are in Kungälv, Nöbbelöv and Solna. InSweden,Orklaisdividedintodifferentbranchesandtogethertheyownbrandsinseveralindustries.ThoseareOrklaConfectionery&Snacks,OrklaCare,OrklaFoodsandOrklaIngredients.Theirproductionfacilitiesarespreadoutaroundthecountry.(Orkla,2019)

Image4:ThewarehouseatOrklaConfectionery&SnacksinFilipstad,Sweden(Orkla,2019)

OrklaConfectionery&Snacks–SummaryofInterviewOrklaConfectionary&SnacksinFilipstad(henceforthOrkla)isusingOneDriveforcloudstoring in as many ways as possible. Thanks to a safety department dealing withquestionsaboutcloudcomputingandcybersecurity,theyarenotsoworriedaboutsafetyissues.OrklaisnotworkingwithAItoday.Theyusesensorsandarestoringinformationaboutproductionstopsonline.However,theoperatorsmustwritethereasontowhythestophappenedbyhandintotheirdigitalsystem.Theyseepotentialinstoringdata,tofindpatternsandtomaketheproductionmoreefficient.Theyarecurrentlydiscussinghowtheycanstoredatafromotherpartsoftheirmanufacturingenvironment.

Whenitcomestohorizontalandverticalintegration,OrklahasaprogramcalledColosthatmeasurestheproductionvolumeandsendsthisinformationtotheoverheadsystemSAP.However,theyareintheprocessofintegratingalloftheproductiondataintoSAP,replacing Colos and increasing vertical integration. This system will be integrated

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throughout all the 103 of the Orkla Group’s factories. When it comes to horizontalintegration,theyaretodayabletocontrolthewholeproductionlinefromoneplace.

AsOrklamanufacturesfoodwith6‐monthtotallifecycle,theyworkwithCSR(CorporateSocialResponsibility)toseetheirecologicalfootprintandtrytomakeiteasyfortheircustomerstotakecareofthewastefromtheirproducts.

ForOrkla,it’srightnowallaboutlearningandunderstandingthetechniquesbehindI4.0.Theysaythatthebiggestchallengewillbetochangethemselvesandtheorganization.Thebigdifferenceastheyseeitisthechangeintools.OrklahastodayaprojectgroupcalledUnified–thisteamhasextraresponsibilitywhenitcomestonewideasthatcanmaketheproductionmoreefficient.Orkla’sproductionorganizationisbuiltasfollows:operators,shiftleaders,productionmanagersandsectionmanagers.

IntheFilipstadfactorymachinepark,therearesomenewandsomeolderparts.Today,these machines are working well together, but when it comes to implementing newmachinesorsystems,Orklawanttomakesurethattheycanstandthechallengesofthefuture.Achallengethattheyfaceistheemployee’sroles,andhowtheemployeescangetusedtoahigh‐technologicalenvironment.

When it comes to change,Orklawantsengagement from their employees.Theyvaluegettingtheiremployeesinvolvedfromthestartofprojectsandtoletthemcomeupwithsolutionstotheirownproblemsintheirdailytasks.Orklasaysthattheiremployeesarecuriousandopenwhenitcomestothemanufacturingdevelopmentandclaimthattheiremployeesarenotreluctanttoimplementchanges.However,theydomentionthattheyoungergeneration ismorecomfortablewithchange thanks to, theysay, theirdigitalfluency.AtOrkla,thereisamixtureofemployeesthathavebeenworkingfor20‐30yearsandthosethathavebeenworkingforonlyafewyears.

Orkla is working with gamification in different ways and has several internalcompetitions.Thisyear,theysponsoredtheSwedishsongcontestMelodifestivalen,andhadaquiztogettheemployeesmoreengagedintheirmarketingcampaign.Additionally,acrosstheOrklaGroup,eachfactorygetsacolor–green,yelloworred–basedontheirresultsinasecurityaudit.Thisisorganizedtomakeeveryoneunderstandtheimportanceofsafety,aswellaslearningmoreaboutthetopic.TheresultencouragestheFilipstadfactorytoworkwellwithsafety,becausetheywanttostayinthegreenzone.

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5.4 AnswerstoStructuredQuestionsQuestionsansweredonascalefrom1to5.

Volvo Powertrain Sandvik Coromant Orkla Confectionery

& Snacks

To what extent has I4.0 been implemented in your organization? 3 3-4 2

To what extent do you think I4.0 will be implemented in your organization? 4-5 5 4

How much do you think I4.0 will change the human’s role in your organization? 4 4 5

To what extent are your products individualized/customized? 2 4 5

How willing to change do you perceive your management to be? 4 5 5

How willing to change do you perceive your employees to be? 4 4 5

To what extent do you consider your organization to be leading in technology? 2 4 3

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6 AnalysisandDiscussionThefirstpartofthischapterwillgiveacurrent‐stateanalysisoftheorganizationsthathave been subject to our interviews. The second will go through each step of thetransformation towards Industry 4.0 according to Lewin’s model. In each stage(unfreezing,change, freezing)wewilldiscusswhat theorganizationsshould focuson,andwhatmethodscanbeusedtofacilitatetheadvancementinthechangeprocess.

6.1 Current‐stateanalysisVolvoPowertraininKöpinghasalreadyimplementedseveralpartsofI4.0andovertheyears, they have invested in several machines that are prepared to work with I4.0techniques.Volvothinksthattherewillbeabigchangeintheirmanufacturingalreadyinthe upcoming three years. When it comes to VR and AR, Volvo has a teamworkingparttimewiththis,andhasseveralongoingprojects.Theyseegreatpotentialinartificialintelligenceandarereadytoimplementitwhenthetechniquesareinplace.Regardinghorizontalintegration,Volvoiscurrentlyintegratinganewsystemthatwillbeabletocollect information along the production line. Volvo has a company taking care ofITrelatedquestionsandthesecurityaroundit.VolvoistakingIT‐securityveryseriouslybutclaimedthatitcancreateobstacleswhenitcomeseverydaylife.AstheproductionwillgetevenmorecomplexwithI4.0,oneofthekeychallengeswillbetotrainandteachpeople to get the right competences. New systems will require new knowledge foremployees, for themtobeable to interactwiththenewmachines.Moreover,Volvo istoday looking for specialists to be responsible for pushing the I4.0 implementationforward.TheemployeesatVolvoarecuriousanddriven,eventhoughmanyofthemhavebeentherefor20‐30years.Volvowouldliketohaveabiggermixbetweenagesintheorganization,becausewhenthemixhappens,manyideasandsolutionstendtocomewithit.Volvodoesthinkthattheemployees’rolesintheorganizationaregoingtochangewiththeI4.0implementation.

SandvikisprettywellalongintheirjourneytowardsIndustry4.0.Ofcourse,therearemanyaspectsthattheyhavenotyetimplemented,buttheyseegreatpotentialinI4.0andareputtingalotofresourcesinthedevelopmenttowardsit.ThefactthattheorganizationhasbeenrecognizedasanadvancedI4.0facilityisapromisingstepforwardtowardsI4.0.Summarizing,Sandvikhasalreadyimplementedpartsofdataanalysis,cloudcomputingaswellasverticalandhorizontalintegration.AI,machinelearning,ARandVRarelessornot at all implemented. Employees at Sandvik seem to be overallmotivated towardschange.Themain challengewe see for theorganization is educationand competencedevelopment, since most workers are of the older generation and likely have moredifficulties to learnnewtechnologicalsolutions.Thegeneralattitude thatSandvikhastowardsthefuturerolesofitsemployeesissomethingthatwebelievehelpstomotivatetheiremployees.Especiallysincetheyseemtohavenointentionoffiringtheirworkers,but rather exchanging their repetitive taskswith tasks ofmore value. Their focus oncommunicationandinformationisadvantageousinmotivatingtheSandvikemployeesaswell.

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For Orkla, it’s right now all about learning and understanding the techniques behindIndustry 4.0. They are using cloud computing in asmanyways as possible and havesensors that store information from the production environment online. They do seegreatpotentialinstoringdata,mainlytofindpatternsandtomaketheproductionmoreefficient.TheyareintheprocessofintegratingproductiondataintotheirSAP‐system,whichwillbe integratedthroughoutall the103ofOrkla’s factories.When itcomestohorizontalintegration,theyaretodayabletocontrolthewholeproductionlinefromoneplace.Orklawanttomakesurethatiftheyinvestinnewmachines,theycanstandthechallengesofthefuture.OnebigdifferencewhenitcomestoI4.0isthechangeintoolsfortheemployees.Theyvaluegettingtheiremployeesinvolvedfromthestartofprojectsandtoletthemcomeupwithsolutionstotheirownproblemsintheirdailytasks.Orklasays that their employees are curious and open when it comes to changes in theproduction.Someof theemployeesatOrklahavebeenworkingthere formanyyears,while some are younger. They do mention that the younger generation is morecomfortablewithchangethanksto,theysay,theirdigitalfluency.

6.2 TheUnfreezingStageAsearlierexplained,theunfreezingstageiswhentheleaderfirstengagesandmotivatesherorhis followersfortheupcomingchange.Thekeyinthisstage istoconvinceandmakethefollowersunderstandwhythechangeisneeded.AsPhilipmentionedearlierinthechapteraboutchangemanagement, thepeoplewithintheorganizationneedtobedeeplycommittedtothenewvisionandorganizationalskills.Otherwise,theirisachancethatthechangewillnothappen.Therefore,duringtheunfreezingstagethemanagementneedstoputeffortsintomakingtheiremployeescommittedtowardsthechangeproject.Thiscanbedoneindifferentwaysandwewillinthefollowingtextexplainhowwethinkorganizationscandothisinthebestway,this,accordingtointerviews,I4.0andthehightechnologicalchangethatthisimplementationwillbring.

Lewinsaidthatsuccessfulimplementationswillonlybeconductedwhentheforcesforchangearestrongerthantheforcesagainstchange(seefigure3below).Consequently,leadersneedtoeithermotivatetheiremployeesforthechange,orreduceandneutralizetheyforcesthatresistchange.Tomakethispossible,motivationandengagementinanearly stage is key, sometimes even before change is settled or decided. Because it isusually the employees that areworkingwith themachines every daywho know themachines and production lines the best, management should talk and listen to theiremployeesregardingtheadvantagesandobstaclesofaspecificchange.Theemployeesknowwhattasksaremosttime‐consumingandwherethereisroomforimprovement.Then it'suptothemanagementtocomeupwithsuggestions for I4.0‐readysolutions,such as an AI solution, and to figure out whether it’s suitable for the business andproduction as awhole. This kind of solution is usedby Sandvik, as learned fromourinterview with them. It is important that the employees understand that the entireimplementation cannot be done at once, and that their suggestions might not beprioritizedfirst,buttheirinformationandknowledgeisstillvaluable.Withthiskindof

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solution, the employees’ voices are heard, and they feel included. It will also raisemotivationandengagementamongtheemployeesandtounderstandthattheyareapartofthecomingchange.

Figure3:Forcesforandagainstchange(Nahavandi,2015,p.305)

Asresultfromtheinterviews,allthecompaniesstronglyagreethatIndustry4.0willbringchangewhenitcomestotheemployees’roleintheorganization.Thistellsusthatmanyjobsintheproductionlinewillbeaffectedorchanged.Itisthereforeimportantthatthisimplementationismadeinsuchawaythattheemployeescanfeelsafeandnothavetobeworriedtolosetheirjob,ifthatisarisk.Inchangesaslarge‐scaleasIndustry4.0,it’snotalwayseasyforthemanagementtounderstandexactlywhatwillbetheoutcomeofthe change, andeven in those situations it is important tobe transparent and let theemployees be a part of the conversations, to let them get the information needed.Otherwisethereisariskthatrumorsstartwhichcauseevenmoreconfusionandconflictsamong theemployees.Therefore,we suggest that involvement, informing, clarity andtransparencyisimportantfortheemployeesnottofeelleftbehindorworriedwithoutreason. Moreover, it is important that the management sees their employees as animportantpartandassettothedevelopment,andtomaketheemployeesunderstandthattheyneedtogrowandlearntogetherwiththechange.

If management already has invested in machines or systems, they can involve theemployeesbytalkingabouttheimplementation,andconsultwiththeemployeeswhattheythinkitthebestwaytogetitimplemented.Cantheyhelp?Dotheyneedexternalconsultants?Howdowe learn it? The key here is tomake themunderstand that theimplementationisgoingtomaketheproductionbetter,andtheirjobeasier,afterthosetechniques,machinesorsystemsareimplemented.Somemightsaythisinvolvementandmotivationwillfeeltimeconsumingandunnecessary,butitisusuallymoreimportantthantheyrealize.This,becauseoftheimportanceofhavingeveryoneworksinthesamedirectionandtowardsthesamegoal.

Whentheemployeesareinvolvedandmotivatedit’stimetomakeastructuredplanforimplementingthechange.Inthisstage,wesuggestclarityandtransparencyabouttheplan. Here again, to get the company work together and to make the employeesunderstandthattheyareapartofthechange.Itiscrucialtolettheemployeesbeinvolvedandforthemanagementtobetransparent.

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Additionally,itisimportanttotalkabouttheexpectationsthatthemanagementhasonthe employees during the change, but as well the other way around.What does theemployeesneedfromthemanagementtobeabletodowhatisexpected,training,tools,extraconsultantsduringaperiodorsimilar?Thisisespeciallyimportantincompanieswheretheproductionlineissupposedtoberunningeveryhouroftheday.Makestrategicplansforwhattheemployeesneed,toexecutetheirtasksandexpectations.

Itisalsoessentialthattherightpeopleareresponsiblefordrivingtheimplementation.With the right people, we talk about the people that are interested and engagedthroughout the full process.Moreover, they are especially important because of theirability to influence others to support the change. We have referred to earlier aschampionsofchange.Itisalsoveryimportantthatthesepeoplehavetimetoinvestforthechange.Whentheplanningofthechangeisfinished,youshouldbetransparentwiththeinformation,allthewayintothestateoftheactualchange.

Theunfreezingstageisinitselfafragilephasesincenothingissetyet.Therefore,wedonotseeanyuseofgamificationsolutionshere.Theplanforthechangeisnotyetfinished,andsowebelieveitmightgettheemployeesmoreconfused.

6.3 TheChangeStageAspreviouslyexplained,thechangestate,accordingtoLewin,iswhentheactualchangehappens.Newskillsneedtobelearned,andleadersshouldbecontinuouslysupportive.In the context of Industry 4.0, the change stage refers to the time in which theimplementationisconducted,includinginstallationofI4.0machinesandsystems,aswellaslearningandgettingusedtothem.

Asmentionedearlier,Hecklauetal.statedthatbecauseIndustry4.0bringssuchhighleveltechnology,theindustrialenvironmentwillchangeandthus,thereisneedforeducationandcompetencedevelopment.Here,weidentify2aspects.ThefirstiseducationaboutIndustry4.0itselfanditsbuildingblocks–AI,machinelearning,AR/VRetc.Thiswillhelptheemployeesunderstandwhattheimplementationisallaboutandhowitworks.Itwillalsoallowthemto,inthefuture,applytheirknowledgeintheirwork,tocomeupwithsolutionsthemselvesthatcanhelptheorganization.Thesecondaspectiseducationaboutmachinesandsystemsthataretobeimplementedandintegratedinthealreadyexistingmanufacturing environment. This is crucial not only for production volumes andefficiency,butalsoforemployees’personaldevelopmentaswellasfortheirinvolvementintheI4.0implementation,whichinturnwillmakethemmoremotivated.

InourinterviewwithSandvik,welearnedthatworkingwithteamstoreachgoalswouldbemoreeffectivethancompetingindividually.Forthisreason,regardingtheaspectofeducation, we present a possible solution which we believe will contribute to theemployees’ expertise and knowledge, aswell as their involvement in the change andtherebymotivation.Whentheorganizationisintheinitialprocessoftheirchangestage,theycanarrangeforIndustry4.0educationdays.Thiseducationcouldfirstincludeoneormorelecturesonindustry4.0and/orsomeofitsbuildingblocks.Secondly,wesuggest

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aworkshopafter the lecture inwhich employees are given amanufacturingproblemstatement,whichtheyneedtosolveusingwhattheylearnedaboutintheI4.0lecture(s)–inteams,involvingpeoplethatnormallydon’tworktogether.Later,thewinningteamcouldbe rewarded insomeway.Thiskindof competition isanexampleofasolutioninvolvinggamification.Employeesknowthattherewillbeanawardgiven(andperhapssomeglory),andsotheymightbemotivatedtodeliverthebestsolution.Likely,thefactthat theproblemstatement isgivenwithinthecontextof theirownproductionmightmake themevenmoremotivated, since theproblem is connected to their reality.Weestimatethatthiskindofsolutionwillmaketheemployeesmoreinvolvedinthechangeprocessand,ofcourse,moreeducatedwithintheconceptsofI4.0.Hopefully,theymighteven feel personally accomplished since they are learning. In addition, perhaps theemployeesdeliversolutionsthatcouldbe implemented,whichisasignificantgainforboththeorganizationaswellasfortheinvolvementofemployees.Thiskindofworkshopsolution also opens a new kind of learning, which might fit some employees better,according towhat Kolb said about people learning differently. The team approach isbetterbothforemployeewell‐being,andfortheoutcomeofthecompetition,aspeoplewithdifferentkindsofexpertisewillcontributetothesolution.Theapproachwillalsofosterthedevelopmentofcross‐functionalcollaboration,whichis importantgiventheresearch fromMcKinsey saying that poor cross‐functional collaboration is a commonpitfallinfailingchangeefforts(seechangemanagementchapter).

The second aspect – systems andmachine education – allows us to present anothersolution. When the time comes to implement new machines and systems, certainemployeescouldbegiventheresponsibilityoveracertainmachineoracertainsystem.Consideringnewmachines,oneemployeepershift(preferablysomeoneotherthantheshiftleader)couldbegivenarun‐throughofhowtousethemachinebyanengineerfromthecompanythatmanufacturedthemachine.Thisemployeewouldnowberesponsiblefor teaching the rest of her or his team, as well as overseeing communication withmanagersorthemachinemanufacturingcompanywhenthemachinedoesn’trunasitshould. We believe that this responsibility will both make the employee feel moreinvolvedandgiveherorhimthefeelingofbeingchosenandgoodatwhattheydo–thiswillsparktheirmotivation.Ofcourse,itisimportantthattheselectionprocessofwhichemployee is to have this responsibility is done in a healthy manner, so that otheremployees don’t feel left out. Here, we again stress the importance of involvement,informationandtransparency.Perhapstheteamcanhaveanopendialogue,discussingwhowantstohavethisresponsibilityandwhohasthemostavailabletime;maybesomeemployeesarealreadyresponsibleforsomething.Thiskindofopendialoguemightmaketheemployeesfeellikethedecisioniscollaborative,sothatresistanceisminimized.Ofcourse,intheend,theresponsibilityshouldbegiventotheemployeethatismostfitted.In the perspective of the organization, this would likely be a champion of change(described in the change management chapter), who shows great engagement andenthusiasm.Thispersonwillwillinglyinvolveandtrytomotivateherorhiscoworkersandhaspotentialtobeagoodleader.

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Regardingsystemseducation,itislikelythatanewsystemwillbeusedbyseveralteams,divisionsandfunctionswithintheorganization.Therefore,wefinditreasonabletocreateaprojectgroup involvingoneperson fromeach teamthatwillbeusing this system–again,preferablysomeoneotherthantheshift leader/manager.Theemployeesinthisprojectgroupcouldsetasideapercentageoftheirworkinghourseachweektoworkonlearningthisnewsystem.Later,theycouldberesponsibleforteachingtheirrespectiveteamsandforerrorreportingetc.Again,thiskindofresponsibility,webelievewillboostfeelingsofinvolvementandmotivation.

Figure4:Solutionsforeducationandcompetencedevelopment

Anotheraspectofgreatimportanceduringthechangestage–apartfromeducation–isfeedback.AsRussbergandAngelissaid(described inourgamificationchapter),videogamedesign includesalmostuncountableamountsof feedbackofdifferentkinds,andfeedbackisthemosteffectivewhenit iscloseintimeandmeaningful.Additionally,asKolb said, a reflection about the learning experience to continue to develop is key tooptimize individual learning.We thereforebelieve that regularand frequent feedbackmeetings can boost motivation during an I4.0 implementation and that it will beimportantbothfortheorganizationaswellasfortheemployees.Duringthechangestage,wesuggestone‐to‐onefeedbackmeetingsbetweenemployeesandtheirmanagersonceaweek,oreveryotherweek.Themeetingsdonotneedtobeverylong;perhaps15‐30minutesisenough.Duringthesemeetings,thefeedbackshouldgobothways.ManagersshouldgivetheiremployeesfeedbackontheirpersonaldevelopmentregardingthenewI4.0 techniques – and employees should give feedback to themanager about the I4.0implementationandhowsheorhefeelsthatmanagementisrunningthechange.Thistwo‐wayfeedbackenablesanopenandhonestrelationshipbetweenmanagementandemployees,sothattheemployeesmightfeelmoreinvolvedinthechangeprocessandmorelistenedtobythemanagement.Again,motivationwillbesparkedup.Thismightalso give themanagement great insights on how the change is going, and even gainvaluablesuggestionsonimprovement.ThosesuggestionsalignwithwhatKritsonissaidabout the change phase; information should be collected, and the views of the groupshouldbeconnectedtotheleaders.Ofcourse,thisrequiresregularandfrequentfollowupmeetingsbymanagementinternallyaswell,sothattheycangothroughpossibleissuesanddiscusshowthechangeprocessshouldcontinuemovingforward.

Education and competence development

Lectures and workshops

Machine/system responsibility

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Anadditionalandgeneralsolutionthatcanbeappliedtoboostmotivationisthatofaleaderboard within the manufacturing environment. This leaderboard could, forinstance,showameasurementofefficiencyfordifferentproductionlines,orforthesameproductlinebutindifferentshifts.Fromourexperienceitiscommontohavethiskindofmeasurement,butitisnotalwaysupforeveryonetosee.Theleaderboardcouldthenbecontinuouslyupdatedtoseewhichlineisdoingthebest.Thisisagamificationapproachthatwebelievecanmaketheemployeesmoremotivatedtohavetheirlinebeontop.Itwould also boost efficiency, as lines and/or shifts would be competing to keep theirmeasurement high. We note that the competition here happens between teams; theemployeesofacertainproductionlineworktogethertomaketheirlinerunassmoothlyaspossible.Thisrequirescollaborationandproblemsolving,whichwebelievecanbehealthy for the employees. Additionally, it doesn’t initiate unnecessary competitionbetween individuals. The difficultywith this approach is that it canmake people toocompetitive.Ifworkersstartrunningacrossthefactorytosolveissues,andiftheytakeshorterbreakssimplybecauseofthisleaderboard,thereisaproblem.Safetyaswellasthewell‐beingofemployeesshouldbeprimaryfocus,whichiswhygreatthoughtshouldbeput intohowthiskindofsolutionwouldbebest fitted foracertainmanufacturingenvironment.

OneadditionalsolutionwerecommendduringtheI4.0implementation–althoughnotnecessarilydirectlytoboostmotivation–isthatofaVR‐solutionformachinesimulation.Assume that the organization is to install an I4.0‐ready machine. If there were asimulation of the operator’s display as well as a simplified version of the machine,operatorscouldsimulatemanufacturingandlearnhowtousethemachineinavirtualreality.Doingthis,operatorsmightbeabletostartmanufacturingassoonasthemachineis readily installed, increasing efficiency and minimizing down‐time. However, thesekindsofVR‐solutionscanbecostly,anditwouldbeimperativetoforecastpossiblecostsand earnings if this kind of solutionwere to be implemented, tomake sure that thepossibleefficiencyincreaseisworthit.Intheemployee’sperspective,thisVR‐learningwill likelybedifferent fromnormalwork tasks, providing anice variation thatmightmakeherorhimmoreinterestedinI4.0solutions,andinturnmoremotivatedtowardsthe change. A possible addition to this solution would be to incorporate somegamificationaspectswithin thevirtualenvironment; includingvisual feedbackand/orprogressbars,whichhasthepotentialofincreasingtheemployee’smotivation.

Finally, as mentioned in the unfreezing stage, we would again like to stress theimportance of a bottom‐up approach. When new solutions and machines are to beimplemented,managersshouldgototheirfactoryworkerstofindoutwhattheyneed.Thiswill increase employee involvement,making them feel that they’re a part of thechangeandthattheorganizationislisteningtotheirconcerns.

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6.4 TheFreezingStageAsearlierdescribed,Lewindefinesthefreezingstageasthestageinwhichthechangeprojectiscompleted.Here,thetaskistoreinforcethenewlylearnedskillsandpracticesandarrivetoastateinwhichtheyareusedfrequentlyandregularly.Thechangeshouldbestabilized,andnewroutinesshouldbe inplace. In the freezingstage, it iskey thatemployeesdon’tfallbackintooldhabitsandbehaviors.

In thecontextof Industry4.0, thiswouldbewhenthenewsystemsandmachinesarealready implementedand inuse.However, it is important to remember thatperhaps,Industry 4.0 will not be finished. There will likely be recurring new technologicaladvancementsinthefuture,soperhapsitwilltakeawhilefortheorganizationstoreachthe freezing stage. In any case, we suggest that certain systems and machineimplementationsindeedcanbesomewhatfinished,eveniftheI4.0implementationasawholeisnot.Thus,thefollowingdiscussionaboutwhatdothinkaboutinthefreezingstagecanbeappliedbothtofinishedimplementationsofsystemsandmachines,aswellastoafinishedfullimplementationofI4.0.Again,Lewinalsostatedthatthefreezingstagerequire leaders to provide resources for coaching, training and reward systems tocontinuemotivatingtheemployees.

During the freezing stage, we stress the importance of two‐way feedback, which wedescribedintheprevioussection.Managersandshift‐leadersneedtoarrangeforregularone‐to‐onemeetings with their employees, again discussing the employees’ personaldevelopment, aswell as letting them express their opinions on how the systems andmachines are running, how management is handling the new I4.0 environment andwhether there isroomfor improvement inanyaspect.As longas there isstill changegoing on, these meetings should still be held often. When changes are dialed down,perhapstheycanoccurlessoften.However,it’simportantthattheemployeesdon’tfeelasifmanagementdoesn’twanttolistentothemanymore.Maybethemanagercanaskhowitfeelsfortheemployeeandwhethersheorhewouldagreetohaveameetingeveryother week rather than every week. The manager should still stay available if theemployee wants an additional meeting. These kinds of regular two‐way feedbackmeetingswebelievewillkeeptheemployeesfeelinginvolved.Asidefromfeedback,webelievethatcontinuousencouragementisalsovitalforcontinuedmotivationamongtheemployees.

Anotherimportantaspectduringthefreezingstageiscontinuededucation.Tonotforgetnewly acquired skills and knowledge, the organization should arrange recurringeducationalevents,suchascoursesorlecturesaboutI4.0techniques.Thistomakesurethat employees are updated according to the new techniques that are used in theirmanufacturing. It will likely also boost motivation, since employees feel like they’relearning,andliketheycancontributetotheorganizationwiththeirnewlyacquiredskills.This aspect is especially important since, as described earlier, I4.0 will likely not becomplete, at least not for a while. The organization needs to keep their employeesupdated and educated about techniques that will come to be implemented in their

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manufacturing environment, as to keep the change process moving forward. Thesecoursesandeducationscanadvantageouslyintegratesomegamificationintheformofproblemsolvingandrewards,aswedescribedinthechangestagesection.Thefollowingfigure (figure5) shows theaspects that shouldbe continuously reinforcedduring thefreezingstage.

Figure5:Importantaspectsduringthefreezingstage

Finally,animperativeaspectduringthefreezingstageisresults.ManagementneedstocommunicatetheresultsoftheI4.0implementation(efficiencyetc.)sothatemployeesseethattheireffortshavebeenrewarded.Thiswilllikelykeeptheemployeesmotivatedfor further initiatives,as theyseethat theyhavemadesignificantcontributionsto theorganization.Ourfinalsuggestion–inthespiritofgamification–iscelebratingsuccess,where the entire organization,management and employees included, can enjoy theireffortsandresults,afterahopefullysuccessfulIndustry4.0implementation.

Education

FeedbackEncouragement

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7 ConclusionsInthisstudy,wehaveinvestigatedimplementationsofIndustry4.0andhowtheycanbefacilitated.Earlyon,werealizedthatthiskindoflarge‐scaledtechnologicalchangewouldbechallenginginmanyways.Forthisreason,wedevelopedafocusontheemployees’andtheorganizationalperspective,andformulatedthefollowingresearchquestion:inthe employees’ as well as the organization’s perspective, how can an Industry 4.0implementationbefacilitated?ThroughaliteraturestudycombinedwithinterviewswiththreecompanieswithintheSwedishmanufacturingindustry,wehavedevelopedsomefocusareasthatwebelievecanhelporganizationswiththeirI4.0implementations.

Concluding, we consider the most important focus areas of change projects of thismagnitudetobemotivation,engagementandinvolvement.Employeesconstituteamajorpartoftheorganization,andiftheyarenotengagedinthechangeproject,thechangewillnothappen.Foremployeestobecomeengaged,theyneedtobemotivatedsothattheywanttotakepartinthechange.Involvingemployeesproperlyinthechangeprocesswillalsomake themmoremotivated, since they will feel as if they are important to theorganization.Motivation,engagementandinvolvementwillcontributetothewell‐beingof employees, as well as a higher chance of a successful change project for theorganization.Itwillalsoleadtohigherefficiencywithinthemanufacturingenvironment.

Another important focus area, we conclude, is transparency; keeping the employeesinformed about what is going on. Management cannot simply say that a changewillhappenwithouttellingtheemployeeswhyithappens;theemployeeswillseenoreasonto why they should make any effort towards this change. Keeping the employeeswellinformedallowsthemtodevelopanengagementandamotivation,whichwilldrivethechangeforward.

BecauseIndustry4.0issotechnologicallyadvanced,knowledgeandeducationwillalsobesignificantfocusareasduringthechangeproject.Regardingeducation,wesuggestalecture‐workshopsolutionwhereemployeesarefirsteducatedonIndustry4.0,andthenpresentedwithaproblemstatementthattheyshouldsolveinteamsusingIndustry4.0techniques.Agamificationapproachcouldbetoaddarewardtothischallenge.Wealsosuggest,whennewmachinesorsystemsareimplemented,thatcertainemployeeshavearesponsibilityoverteachingthemachinesandsystemstotheircoworkersaswellasmaking sure that they are functioningwell. Tomake an Industry 4.0 implementationwork well, we also stress the importance of feedback. Feedback should be frequent,regularandtwo‐way,meaningthattheemployeeshouldbegivenfeedback,butshouldalsogivefeedbacktoherorhismanagerandtotheorganizationitself.

Finally,wewouldliketosaythatIndustry4.0isanextensiveandlarge‐scaledchange,and therefore very complicated. However, if management makes a genuine effort toinvolvetheiremployees,theorganizationhasagreatchanceofconductingasuccessfulIndustry4.0implementation,wheretheentireorganizationwithallitsemployeesareonthesametrackandworkingtowardsthesamegoal.

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8 RecommendationsforFutureResearchDuring this study, we have identified some aspects and topics that could be studiedfurther.Thesetopicscouldperhapsbeusefulforourinterviewsubjectorganizations,aswellasforourselvesorotherstudentsinfuturestudies.

In this study, we focused on gaining knowledge from literature, as well as includingvaluable practical information from three organizations to be able to provide morerealisticsolutions.Anextensionofthisstudycouldexaminemanymoreorganizations–more than three – or focus on a certain industrywithinmanufacturing and examineseveralindustrieswithinthatindustry.Thisapproachcouldallowformorestatisticalandmoregenerallyapplicablesolutions.

AnotherinterestingextensionofthisstudywouldbetofocusonasingleorganizationandtheirI4.0implementation.Itwouldbepossibletofollowthemthroughtheirprogressandseewhatsolutionswouldactuallybeapplicableinpractice.Thiscouldbeconductedbyimplementingoneorsomeofthesolutionsweprovideinthisstudy,testingthemwithinthe organization and evaluating whether it is useful, both in the perspective of theemployees(well‐being,motivation)aswellas theorganization itself (profit,efficiencyetc.).

Continuing,we identifysome limitations inourstudywhen itcomestooursuggestedVRsolutionformachinesimulationduringthechangestage.Withinthisstudy,therewasnotsufficientinformationabouttheproductionenvironmentofthestudiedorganizationstobeabletodrawaconclusionaboutwhetherthiskindofsolutionwouldbepossible.Therefore,aninterestingtopicwouldbetoexaminethiskindofsolutionwithinasingleorganization – would it be profitable, would it increase efficiency, and would it betechnicallypossibleatthisstageoftheI4.0implementation?

Yetanother interesting topic to studywouldbe,asdescribed in thechangestage, theimplementation of a leaderboard within the production environment. Earlier, wediscussedthatitcouldbeusedtoboostmotivationandtoincreaseefficiency,butthatitmightraisesafetyconcernsandjeopardizeemployeewell‐being.Itwouldbepossibletoexaminethiswithinaspecificproductionenvironment,recordinghowtheseparameters(efficiency,motivation,safety,well‐being)areaffectedbytheleaderboardandevaluatingwhether this kind of solution would influence profitability – whether positively ornegatively.

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Appendix‐InterviewQuestions

Semi‐structuredQuestionsTechnicalQuestions

• Doyouutilizecloudcomputing?• Doyouutilizeartificialintelligence/machinelearning?

o Domachinesand/or sensors inyourproductioncollectdata?Howdotheydothat?

• Doyouemploydataanalysis?• DoyouuseARorVR?• Howmuchpotentialdoyouseewithintheseconceptsforyourownproduction

andorganization?• Howdoyouviewcyber‐security?• Areyourcomputerizedsystemsintegratedinanyway?Dotheyhavetheabilityto

shareinformationwitheachotherandcollectinformationfromeachother?o Verticalintegrationo Horizontalintegration

• Towhatextentdoyoufollowyourproductlifecycle?o Doyourproductssendinformationwhentheyareinneedofserviceor

whentheyneedtobedisposedof?

Organization• Whatisyourorganizationalstructurelike(flat/hierarchal)?• Whatspecificorganizationalchallengesdoyouseeforyourorganization,whenit

comestotheimplementationoftheaboveconcepts?• How has the implementation of above concepts affected the roles of your

employeeswithintheorganization?

Gamification• Howdoyoumotivateyouremployeestowardschange?• Howdifficultisittomotivateyouremployeesattimesofchange?• Do you see any kind of difference in need of acknowledgement, feedback and

praisebetweendifferentgenerationsamongyouremployees?• Do you see any kind of difference in willingness to change between different

generationsamongyouremployees?• Doyouknowoftheconceptofgamification?

o [Ifnot,explainit.]o Doyouimplementanyaspectsofgamificationwithinyour

organization?▪ Competitions,points,achievements,leaderboards...

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StructuredQuestions• Towhat extent have the above described concepts been implemented in your

organization?• Towhatextentdoyou thinkabovedescribedconceptswillbe implemented in

yourorganization?• Howmuchdoyouthinkabovedescribedconceptswillchangethehuman’srolein

yourorganization?• Dowhatextentareyourproductsindividualized/customized?• Howmuch time do you think it will take for your organization to implement

industry4.0?• Howwillingtochangedoyouperceiveyourorganizationtobe?

o managemento employees

• Towhatextentdoyouconsideryourorganizationtobeleadingintechnology?

TRITA ITM-EX 2019:116

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