IDEAS home Printed from https://ideas.repec.org/a/bla/popmgt/v31y2022i1p9-31.html
   My bibliography  Save this article

Disruptive Technologies and Operations Management in the Industry 4.0 Era and Beyond

Author

Listed:
  • Tsan‐Ming Choi
  • Subodha Kumar
  • Xiaohang Yue
  • Hau‐Ling Chan

Abstract

In the Industry 4.0 era, automation and data analytics emerge as the major forces to enhance efficiency in operations management (OM). Disruptive technologies, such as artificial intelligence, robotics, blockchain, 3D printing, 5G, Internet‐of‐Thing, digital twins, and augmented reality, are widely applied. They potentially will bring a radical change to real world operations. In this study, we first explore several major disruptive technologies, examine the corresponding OM studies, and highlight their current applications in the industry. Then, we discuss the pros and cons associated with the use of these technologies and uncover the potential human–machine conflicting areas. After that, we propose measures which may be able to achieve human–machine reconciles in the coming Industry 5.0 era. A concept of “sustainable social welfare” which includes worker welfare, privacy, etc. is proposed and the roles played by policy makers are also discussed. Finally, a future research agenda, which covers topics in both the Industry 4.0 and Industry 5.0 eras, is established.

Suggested Citation

  • Tsan‐Ming Choi & Subodha Kumar & Xiaohang Yue & Hau‐Ling Chan, 2022. "Disruptive Technologies and Operations Management in the Industry 4.0 Era and Beyond," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 9-31, January.
    • Handle: RePEc:bla:popmgt:v:31:y:2022:i:1:p:9-31
    DOI: 10.1111/poms.13622
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/poms.13622
    Download Restriction: no
    File URL: https://libkey.io/10.1111/poms.13622?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jorge Mejia & Gloria Urrea & Alfonso J. Pedraza‐Martinez, 2019. "Operational Transparency on Crowdfunding Platforms: Effect on Donations for Emergency Response," Production and Operations Management, Production and Operations Management Society, vol. 28(7), pages 1773-1791, July.
    2. Gah-Yi Ban & Cynthia Rudin, 2019. "The Big Data Newsvendor: Practical Insights from Machine Learning," Operations Research, INFORMS, vol. 67(1), pages 90-108, January.
    3. Hart, Oliver D & Moore, John, 1988. "Incomplete Contracts and Renegotiation," Econometrica, Econometric Society, vol. 56(4), pages 755-785, July.
    4. Oliver Hart & John Moore, 1999. "Foundations of Incomplete Contracts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 115-138.
    5. Dmitry Anokhin & Payman Dehghanian & Miguel A. Lejeune & Jinshun Su, 2021. "Mobility‐As‐A‐Service for Resilience Delivery in Power Distribution Systems," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2492-2521, August.
    6. Yan Shang & David Dunson & Jing-Sheng Song, 2017. "Exploiting Big Data in Logistics Risk Assessment via Bayesian Nonparametrics," Operations Research, INFORMS, vol. 65(6), pages 1574-1588, December.
    7. Choi, Tsan-Ming, 2019. "Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 17-29.
    8. Guo Li & Na Li & Suresh P. Sethi, 2021. "Does CSR Reduce Idiosyncratic Risk? Roles of Operational Efficiency and AI Innovation," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 2027-2045, July.
    9. Dimitris Bertsimas & Arthur Delarue & Patrick Jaillet & Sébastien Martin, 2019. "Travel Time Estimation in the Age of Big Data," Operations Research, INFORMS, vol. 67(2), pages 498-515, March.
    10. ManMohan S. Sodhi & Christopher S. Tang, 2019. "Research Opportunities in Supply Chain Transparency," Production and Operations Management, Production and Operations Management Society, vol. 28(12), pages 2946-2959, December.
    11. Long Gao & Jim (Junmin) Shi & Michael F. Gorman & Ting Luo, 2020. "Business Analytics for Intermodal Capacity Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 310-329, March.
    12. Tomer Geva & Maytal Saar‐Tsechansky, 2021. "Who Is a Better Decision Maker? Data‐Driven Expert Ranking Under Unobserved Quality," Production and Operations Management, Production and Operations Management Society, vol. 30(1), pages 127-144, January.
    13. Raissa Zurli Bittencourt Bravo & Adriana Leiras & Fernando Luiz Cyrino Oliveira, 2019. "The Use of UAVs in Humanitarian Relief: An Application of POMDP‐Based Methodology for Finding Victims," Production and Operations Management, Production and Operations Management Society, vol. 28(2), pages 421-440, February.
    14. Li, Han & Gupta, Ashish & Zhang, Jie & Flor, Nick, 2020. "Who will use augmented reality? An integrated approach based on text analytics and field survey," European Journal of Operational Research, Elsevier, vol. 281(3), pages 502-516.
    15. Jiri Chod & Nikolaos Trichakis & Gerry Tsoukalas & Henry Aspegren & Mark Weber, 2020. "On the Financing Benefits of Supply Chain Transparency and Blockchain Adoption," Management Science, INFORMS, vol. 66(10), pages 4378-4396, October.
    16. Subodha Kumar & Vijay Mookerjee & Abhinav Shubham, 2018. "Research in Operations Management and Information Systems Interface," Production and Operations Management, Production and Operations Management Society, vol. 27(11), pages 1893-1905, November.
    17. Li Chen & Yao Cui & Hau L. Lee, 2021. "Retailing with 3D Printing," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 1986-2007, July.
    18. Sandun Perera & Milind Dawande & Ganesh Janakiraman & Vijay Mookerjee, 2020. "Retail Deliveries by Drones: How Will Logistics Networks Change?," Production and Operations Management, Production and Operations Management Society, vol. 29(9), pages 2019-2034, September.
    19. Arbabian, Mohammad E. & Wagner, Michael R., 2020. "The impact of 3D printing on manufacturer–retailer supply chains," European Journal of Operational Research, Elsevier, vol. 285(2), pages 538-552.
    20. Samayita Guha & Subodha Kumar, 2018. "Emergence of Big Data Research in Operations Management, Information Systems, and Healthcare: Past Contributions and Future Roadmap," Production and Operations Management, Production and Operations Management Society, vol. 27(9), pages 1724-1735, September.
    21. Lamballais, T. & Roy, D. & De Koster, M.B.M., 2017. "Estimating performance in a Robotic Mobile Fulfillment System," European Journal of Operational Research, Elsevier, vol. 256(3), pages 976-990.
    22. Hema Yoganarasimhan, 2020. "Search Personalization Using Machine Learning," Management Science, INFORMS, vol. 66(3), pages 1045-1070, March.
    23. Hau L. Lee, 2018. "Big Data and the Innovation Cycle," Production and Operations Management, Production and Operations Management Society, vol. 27(9), pages 1642-1646, September.
    24. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    25. Sameer Hasija & Zuo-Jun Max Shen & Chung-Piaw Teo, 2020. "Smart City Operations: Modeling Challenges and Opportunities," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 203-213, January.
    26. X. Wang & A.W.W. Yew & S.K. Ong & A.Y.C. Nee, 2020. "Enhancing smart shop floor management with ubiquitous augmented reality," International Journal of Production Research, Taylor & Francis Journals, vol. 58(8), pages 2352-2367, April.
    27. Shi, Ruixia & Chen, Hongyu & Sethi, Suresh P., 2019. "A generalized count model on customers' purchases in O2O market," International Journal of Production Economics, Elsevier, vol. 215(C), pages 121-130.
    28. Dmitry Ivanov & Christopher S. Tang & Alexandre Dolgui & Daria Battini & Ajay Das, 2021. "Researchers' perspectives on Industry 4.0: multi-disciplinary analysis and opportunities for operations management," International Journal of Production Research, Taylor & Francis Journals, vol. 59(7), pages 2055-2078, April.
    29. Gupta, Varun & Perera, Sandun, 2021. "Managing surges in online demand using bandwidth throttling: An optimal strategy amid the COVID-19 pandemic," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    30. Volodymyr Babich & Gilles Hilary, 2020. "OM Forum—Distributed Ledgers and Operations: What Operations Management Researchers Should Know About Blockchain Technology," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 223-245, March.
    31. Xi Vincent Wang & Lihui Wang, 2019. "Digital twin-based WEEE recycling, recovery and remanufacturing in the background of Industry 4.0," International Journal of Production Research, Taylor & Francis Journals, vol. 57(12), pages 3892-3902, June.
    32. Ho‐Yin Mak & Zuo‐Jun Max Shen, 2021. "When Triple‐A Supply Chains Meet Digitalization: The Case of JD.com's C2M Model," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 656-665, March.
    33. Gabriella M. Hastig & ManMohan S. Sodhi, 2020. "Blockchain for Supply Chain Traceability: Business Requirements and Critical Success Factors," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 935-954, April.
    34. Tsan‐Ming Choi & Stein W. Wallace & Yulan Wang, 2018. "Big Data Analytics in Operations Management," Production and Operations Management, Production and Operations Management Society, vol. 27(10), pages 1868-1883, October.
    35. Tang, Christopher S. & Veelenturf, Lucas P., 2019. "The strategic role of logistics in the industry 4.0 era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 1-11.
    36. Stephanie F. Cheng & Gus De Franco & Haibo Jiang & Pengkai Lin, 2019. "Riding the Blockchain Mania: Public Firms’ Speculative 8-K Disclosures," Management Science, INFORMS, vol. 65(12), pages 5901-5913, December.
    37. Jean Tirole, 1999. "Incomplete Contracts: Where Do We Stand?," Econometrica, Econometric Society, vol. 67(4), pages 741-782, July.
    38. Jan A. Van Mieghem, 1999. "Coordinating Investment, Production, and Subcontracting," Management Science, INFORMS, vol. 45(7), pages 954-971, July.
    39. Geng Cui & Man Leung Wong & Hon-Kwong Lui, 2006. "Machine Learning for Direct Marketing Response Models: Bayesian Networks with Evolutionary Programming," Management Science, INFORMS, vol. 52(4), pages 597-612, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maximilian Klöckner & Christoph G. Schmidt & Stephan M. Wagner, 2022. "When Blockchain Creates Shareholder Value: Empirical Evidence from International Firm Announcements," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 46-64, January.
    2. Tiwari, Sunil & Sharma, Pankaj & Choi, Tsan-Ming & Lim, Andrew, 2023. "Blockchain and third-party logistics for global supply chain operations: Stakeholders’ perspectives and decision roadmap," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    3. Tsan-Ming Choi & Alexandre Dolgui & Dmitry Ivanov & Erwin Pesch, 2022. "OR and analytics for digital, resilient, and sustainable manufacturing 4.0," Annals of Operations Research, Springer, vol. 310(1), pages 1-6, March.
    4. Sunil Mithas & Zhi‐Long Chen & Terence J.V. Saldanha & Alysson De Oliveira Silveira, 2022. "How will artificial intelligence and Industry 4.0 emerging technologies transform operations management?," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4475-4487, December.
    5. Sun, Xuting & Kuo, Yong-Hong & Xue, Weili & Li, Yanzhi, 2024. "Technology-driven logistics and supply chain management for societal impacts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    6. Bin Shen & Ciwei Dong & Stefan Minner, 2022. "Combating Copycats in the Supply Chain with Permissioned Blockchain Technology," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 138-154, January.
    7. ManMohan S. Sodhi & Zahra Seyedghorban & Hossein Tahernejad & Danny Samson, 2022. "Why emerging supply chain technologies initially disappoint: Blockchain, IoT, and AI," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2517-2537, June.
    8. Li, Zhiwen & Xu, Xianhao & Bai, Qingguo & Chen, Cheng & Wang, Hongwei & Xia, Peng, 2023. "Implications of information sharing on blockchain adoption in reducing carbon emissions: A mean–variance analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 178(C).
    9. Choi, Tsan-Ming & Ouyang, Xu, 2021. "Initial coin offerings for blockchain based product provenance authentication platforms," International Journal of Production Economics, Elsevier, vol. 233(C).
    10. Choi, Tsan-Ming & Guo, Shu & Luo, Suyuan, 2020. "When blockchain meets social-media: Will the result benefit social media analytics for supply chain operations management?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    11. Niu, Baozhuang & Mu, Zihao & Cao, Bin & Gao, Jie, 2021. "Should multinational firms implement blockchain to provide quality verification?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    12. Zhu, Shichao & Li, Jian & Wang, Shouyang & Xia, Yusen & Wang, Yajing, 2023. "The role of blockchain technology in the dual-channel supply chain dominated by a brand owner," International Journal of Production Economics, Elsevier, vol. 258(C).
    13. Niu, Baozhuang & Dong, Jian & Liu, Yaoqi, 2021. "Incentive alignment for blockchain adoption in medicine supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    14. Chung, Sai-Ho, 2021. "Applications of smart technologies in logistics and transport: A review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    15. Ma, Deqing & Hu, Jinsong, 2022. "The optimal combination between blockchain and sales format in an internet platform-based closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 254(C).
    16. Latan, Hengky & Lopes de Sousa Jabbour, Ana Beatriz & Sarkis, Joseph & Chiappetta Jabbour, Charbel Jose & Ali, Murad, 2024. "The nexus of supply chain performance and blockchain technology in the digitalization era: Insights from a fast-growing economy," Journal of Business Research, Elsevier, vol. 172(C).
    17. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    18. Zhang, Tianyu & Dong, Peiwu & Chen, Xiangfeng & Gong, Yu, 2023. "The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members," Omega, Elsevier, vol. 114(C).
    19. Li, Guo & Xue, Jing & Li, Na & Ivanov, Dmitry, 2022. "Blockchain-supported business model design, supply chain resilience, and firm performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    20. Long He & Sheng Liu & Zuo‐Jun Max Shen, 2022. "Smart urban transport and logistics: A business analytics perspective," Production and Operations Management, Production and Operations Management Society, vol. 31(10), pages 3771-3787, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:popmgt:v:31:y:2022:i:1:p:9-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1937-5956 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.