Search results

The purpose of this paper is to present the findings of a recent study conducted with the objective of addressing the problem of failure of baggage carts in the high-speed baggage tunnel at Heathrow Terminal 5 by the development of an innovative condition-based maintenance (CBM) system designed to meet the requirements of 21st century airport systems and Industry 4.0.

An empirical experimental approach to this action research was taken to install a vibration condition monitoring pilot test in the north tunnel at Terminal 5. Vibration data were collected over a 6-month period and analysed to find the threshold of good quality tyres and those with worn bearings that needed replacement. The results were compared with existing measures to demonstrate that vibration monitoring could be used as a predictive model for CBM.

The findings demonstrated a clear trend of increasing vibration velocity with age and use of the baggage cart wheels caused by wheel mass unbalanced inertia that was transmitted to the tracks as vibration. As a result, preventative maintenance is essential to ensure the smooth running of airport baggage. This research demonstrates that a healthy wheel produces vibration of under 60 mm/s whereas a damaged wheel measures up to 100 mm/s peak to peak velocity and this can be used in real-time condition monitoring to prevent baggage cart failure. It can also run as an autonomous system linked to AI and Industry 4.0 airport logic.

Whilst vibration monitoring has been used to measure movement in static structures such as bridges and used in rotating machinery such as railway wheels (Tondon and Choudhury, 1999); this is unique as it is the first time it has been applied on a stationary structure (tracks) carrying high-speed rotating machinery (baggage cart wheels). This technique has been patented and proven in the pilot study and is in the process of being rolled out to all Heathrow terminal connection tunnels. It has implications for all other airports worldwide and, with new economic sensors, to other applications that rely on moving conveyor belts.

This study aims to enhance the theoretical foundations of servitization research by establishing a theoretical connection with complexity management. The authors develop a conceptual framework to describe complexity management mechanisms in servitization and digital platforms' specific role in allowing synergies between complexity reduction and absorption mechanisms.

A theory adaptation approach is used. Theory adaptation introduces new perspectives and conceptualization to the domain theory (servitization, with a focus on the role of digital platforms) by informing it with a method theory (complexity management).

This study provides four key contributions to the servitization literature: (1) connecting the servitization and complexity-management terminologies, (2) identifying and classifying complexity-management mechanisms in servitization, (3) conceptualizing digital platforms' role in servitization complexity management and (4) recognizing digital platforms' complexity-management synergies.

This study highlights that by using digital platforms in servitization and understanding the platform approach more thoroughly, companies can gain new capabilities and opportunities to manage and leverage complexity.

With the development of digitalization and interconnection, there is a growing need for enterprise customers to ensure the compatibility of the third-party components they are using in the manufacturing process, thus raising the integration requirements for the Industrial Internet platform and its third-party developers. Therefore, our study investigates the optimal integration decision of the Industrial Internet platform while considering its access price, the integration cost, and the net utility derived by enterprise customers from the third-party components.

We model a two-sided Industrial Internet platform that connects customers on the demand side to the developers on the supply side. We then explore the integration decision of the Industrial Internet platform and its important factors by solving the optimal profit function.

First, despite the high integration cost of third-party developers, the platform still chooses to integrate when enterprise customers derive high utility from the third-party components. Second, due to the compatibility effect, charging the enterprise customers a higher price may reduce the platform profits when these customers derive low utility from the third-party components. Third, the platform profits will increase along with the integration cost of third-party developers when it is low in the case where enterprise customers derive low utility from third-party components.

Our findings offer insightful takeaways for the Industrial Internet platform when making integration decisions.

Through this case, students will not only learn about the latest development of this emerging industry, IoT, but also gain a systematic understanding of “ecosystem strategy” and get to know a new corporate growth model called “co-creation”.

This case describes why and how Advantech Co., Ltd. (hereinafter referred to as Advantech) has transformed in the age of the Internet of Things. Aware of the ecosystem attributes of the IoT industry and committed to the company’s principle of “altruism”, Advantech strategically positioned itself as an “IoT platform provider” and an “enabler” for IoT applications. After carrying out a reform in terms of internal management, external cooperation, and development model, Advantech has evolved from an industrial computer maker to an IoT solution provider. Since the launch of the “co-creation model” at the end of 2016, Advantech has drawn attention from many excellent companies in traditional industries. With the Internet of Everything close at hand, Chairman KC Liu is well aware there are many challenges to overcome as Advantech strives to build an industrial IoT ecosystem, the “evolution” continues.

MBAs, EMBAs and senior executives.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy

This study shows various pathways manufacturers can take when embarking on digital servitization (DS) journeys. It builds on the DS and modularity literature to map the strategic trajectories of product–service–software (PSSw) configurations.

The study is exploratory and based on the inductive theory building method. The empirical data were gathered through a workshop with focus groups of 15 servitization manufacturers (with 22 respondents), an on-site workshop (in-depth case study), semi-structured interviews, observations and document study of archival data.

The DS trajectories are idiosyncratic and dependent on design architectures of PSSw modules, balancing choices between standardization and innovation. The adoption of software systems depends on the maturity of the industry-specific digital ecosystem. Decomposition and integration of PSSw modules facilitate DS transition through business model modularity. Seven testable propositions are presented.

With the small sample size from different industries and one in-depth case study, generalizing the findings was not possible.

The mapping exercise is powerful when top management from different functional departments can participate together to share their expertise and achieve consensus. It logs the “states” that the manufacturer undergoes over time.

The Digital Servitization Cube serves as a conceptual framework for manufacturers to systematically map and categorize their current and future PSSw strategies. It bridges the cross-disciplinary theoretical discussion in DS.

Supply chain resilience capabilities are usually considered in light of some anticipated events and are as passive assets, which are “waiting” for use in case of an emergency. This, however, can be inefficient. Moreover, the current COVID-19 pandemic has revealed difficulties in the timely deployments of resilience assets and their utilization for value creation. We present a framework that consolidates different angles of efficient resilience and renders utilization of resilience capabilities for creation of value.

We conceptualise the design of the AURA (Active Usage of Resilience Assets) framework for post-COVID-19 supply chain management through collating the extant literature on value creation-oriented resilience and practical examples and complementing our analysis with a discussion of practical implementations.

Building upon and integrating the existing frameworks of VSC (Viable Supply Chain), RSC (Reconfigurable Supply Chain) and LCNSC (Low-Certainty-Need Supply Chain), we elaborate on a new idea in the AURA approach – to consider resilience as an inherent, active and value-creating component of operations management decisions, rather than as a passive “shield” to protect against rare, severe events. We identify 10 future research areas for lean resilience integrating management and digital platforms and technology.

The outcomes of our study can be used by supply chain and operations managers to improve the efficiency and effectiveness by turning resilience from passive, cost-driving assets into a value-creating, inclusive decision-making paradigm.

We propose a novel approach to bring more dynamics to the notion of supply chain resilience. We name our approach AURA and articulate its two major advantages as follows: (1) reduction of disruption prediction efforts and (2) value creation from resilience assets. We offer a discussion on ten future research directions towards a lean resilience.

This article explores a particular on-demand fabrication unit, the microfactory (MF). It identifies and contrasts several MFs and proposes a taxonomy. This research also explores online manufacturing platforms (OMP) that complement certain MFs.

This research implements a multiple case study (71 cases in 21 countries), triangulating data available on the web with interviews, virtual/physical tours and experiential research.

The results suggest that automation and openness are the main dimensions that differentiate the MFs. Using these dimensions, a taxonomy of MFs is created. MFs with relatively low automation and high openness tend to be innovation-driven microfactories (IDMFs). MFs with high automation and low openness levels tend to be customization-driven microfactories (CDMFs). And MFs with relatively low automation and low openness tend to be classic machine shops (MSs). There are two types of OMP: closed (COMPs) and multisided (MOMPs). MOMPs can be low-end or high-end.

In a world where online platforms are becoming central to the reinvention of manufacturing, multisided online platforms and small fabricators will become strongly symbiotic.

This paper offers a clearer conceptualization of MFs and OMPs, which may help to better understand the reality of local on-demand fabrication. Moreover, it explores a new type of experiential research, which tries to describe and interpret firms through transactional activities. Many details of a firm that are difficult to capture via interviews and netnography can be revealed this way.

Using social network theory (SNT), this study empirically examines the impact of digital supply chain announcements disclosing corporate social responsibility (CSR) information on stock market value.

Based on 172 digital supply chain announcements disclosing CSR information from Chinese A-share listed companies, this study uses event study method to test the hypotheses.

First, digital supply chain announcements disclosing CSR information generate positive and significant market reactions, which is timely. Second, strategic CSR and value-based CSR disclosed in digital supply chain announcements have a more positive impact on stock market, however there is no significant difference when the CSR orientation is either towards internal or external stakeholders. Third, in terms of digital supply chain network characteristics, announcements reflecting higher relationship embeddedness and higher digital breadth and depth lead to more positive increases of stock value.

First, the authors consider the value of CSR information in digital supply chain announcements, using an event study approach to fill the gap in the related area. This study is the first examination of the joint impact of digital supply chain and CSR on market reactions. Second, compared to the previous studies on the single dimension of digital supply chain technology application, the authors innovatively consider supply chain network relationship and network structure based on social network theory and integrate several factors that may affect the market reaction. This study improves the understanding of the mechanism between digital supply chain announcements disclosing CSR information and stock market, and informs future research.