Abstract
The term ’industry’ is used to denote the economic sector responsible for the production of material goods, which are characterized by a high degree of mechanization and automation. The advent of industrialization has precipitated seminal technological developments in the domain of industrial engineering, which have, in turn, given rise to paradigm shifts of such profound nature that they have been termed ’industrial revolutions’.
The purpose of this paper is twofold: firstly, to identify principles applicable to organizations (smart factories) that have adopted the Industry 4.0 concept, and secondly, to explore how these principles influence the interrelationships between the concept’s main pillars and technologies.
Nevertheless, no matter how the concept of Industry 4.0 is understood, it is vital to recognize that the principles, pillars and technologies associated with it will shape the future configuration of organizations. This will be determined by novel administrative, executive and control structures that are specific to activities related to the product/service life cycle offered to customers.