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How Steel Mills Transform into Smart Mills: Digital Changes and Development Determinants in the Polish Steel Industry

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  • Bozena Gajdzik

Abstract

Purpose: The research question is how do steel mills transform to smart mills. This is the purpose of this paper. Approach/Methodology/Design: Dynamic technological development forces enterprises to introduce changes in production. Enterprises expect digital production to enable them to optimize production more than ever before. The changes concern especially the adaptation and integration of digital technologies. The article is about key areas and determinants of change in the steel industry in Poland on the way of steel mills to digital technologies. The article is a compilation of theory and practice. On the basis of statistical information, data on key areas of change in the steel industry in Poland was presented in the paper. Findings: At the current stage of transformation of the steel industry in Poland to Industry 4.0, steel mills are investing in technologies to process data in real time and acquire IT systems along with computer services to compile solutions (installations), combining steel production technologies with IT applications. Steel production technologies are entwined with IC systems with access to IoT, Big Data and Cloud Computing solutions. Compact OT (operation tech) and IT (informatics) structures are emerging, which in the future will create a cyber-physical steel production system (CPSPS: Cyber-Physical Steel Production System). Practical Implications: The analysis and evaluation carried out in the article shows that a key factor affecting the development of this sector is the way to Industry 4.0. Presented analysis in the paper can be used by companies in the steel sector to build a development strategy towards Industry 4.0. Originality/Value: The topic of the article is very important because it focuses on changes and determinats in the Polish steel Industry unnder the conditions of the Fourth Industrial Revolution.

Suggested Citation

  • Bozena Gajdzik, 2022. "How Steel Mills Transform into Smart Mills: Digital Changes and Development Determinants in the Polish Steel Industry," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 27-42.
    • Handle: RePEc:ers:journl:v:xxv:y:2022:i:1:p:27-42
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    References listed on IDEAS

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    1. Bożena Gajdzik & Włodzimierz Sroka & Jolita Vveinhardt, 2021. "Energy Intensity of Steel Manufactured Utilising EAF Technology as a Function of Investments Made: The Case of the Steel Industry in Poland," Energies, MDPI, vol. 14(16), pages 1-17, August.
    2. Klaus Abberger & Wolfgang Nierhaus, 2017. "Zur Messung der Unsicherheit mit Befragungsdaten," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(16), pages 25-29, August.
    3. Sushil, 2017. "Does Flexibility Mitigate or Enhance Risk?," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(3), pages 169-171, September.
    4. Bożena Gajdzik & Włodzimierz Sroka, 2021. "Resource Intensity vs. Investment in Production Installations—The Case of the Steel Industry in Poland," Energies, MDPI, vol. 14(2), pages 1-16, January.
    5. Frank, Alejandro Germán & Dalenogare, Lucas Santos & Ayala, Néstor Fabián, 2019. "Industry 4.0 technologies: Implementation patterns in manufacturing companies," International Journal of Production Economics, Elsevier, vol. 210(C), pages 15-26.
    6. Radosław Wolniak & Sebastian Saniuk & Sandra Grabowska & Bożena Gajdzik, 2020. "Identification of Energy Efficiency Trends in the Context of the Development of Industry 4.0 Using the Polish Steel Sector as an Example," Energies, MDPI, vol. 13(11), pages 1-16, June.
    7. Henning Kagermann, 2015. "Change Through Digitization—Value Creation in the Age of Industry 4.0," Springer Books, in: Horst Albach & Heribert Meffert & Andreas Pinkwart & Ralf Reichwald (ed.), Management of Permanent Change, edition 127, chapter 2, pages 23-45, Springer.
    8. Bożena Gajdzik & Radosław Wolniak, 2021. "Digitalisation and Innovation in the Steel Industry in Poland—Selected Tools of ICT in an Analysis of Statistical Data and a Case Study," Energies, MDPI, vol. 14(11), pages 1-25, May.
    9. Paul J. J. Welfens & Michael Hüther & Matthias Diermeier & Gabriel Felbermayr & Jasmin Gröschl & Karsten Nowrot & Andreas Grimmel, 2017. "Wie geht es mit dem Brexit weiter? [Brexit: What Are the Next Steps?]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 97(8), pages 535-557, August.
    10. Bożena Gajdzik & Sandra Grabowska & Sebastian Saniuk & Tadeusz Wieczorek, 2020. "Sustainable Development and Industry 4.0: A Bibliometric Analysis Identifying Key Scientific Problems of the Sustainable Industry 4.0," Energies, MDPI, vol. 13(16), pages 1-27, August.
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    Cited by:

    1. Bożena Gajdzik & Radosław Wolniak & Wieslaw Wes Grebski, 2023. "Electricity and Heat Demand in Steel Industry Technological Processes in Industry 4.0 Conditions," Energies, MDPI, vol. 16(2), pages 1-29, January.
    2. Bożena Gajdzik & Radosław Wolniak & Wieslaw Wes Grebski, 2022. "An Econometric Model of the Operation of the Steel Industry in POLAND in the Context of Process Heat and Energy Consumption," Energies, MDPI, vol. 15(21), pages 1-26, October.
    3. Tomasz Jałowiec & Dariusz Grala & Piotr Maśloch & Henryk Wojtaszek & Grzegorz Maśloch & Agnieszka Wójcik-Czerniawska, 2022. "Analysis of the Implementation of Functional Hydrogen Assumptions in Poland and Germany," Energies, MDPI, vol. 15(22), pages 1-25, November.

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    More about this item

    Keywords

    Digital technologies; ICT; steel industry; Poland; Industry 4.0; steel mills and smart mills.;
    All these keywords.

    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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