Business Case Evaluation Methodology (BCEM) for Factories Digitalization

In the last years, the fast evolution towards automation and digitalization of production systems is forcing companies in re-thinking their business strategies and models. To overcome manufacturers’ conservatism, migration strategies and business case evaluations are required to assess, support and guide adoption of the next generation of smart production systems. This paper proposes a Business Case Evaluation Methodology (BCEM) to support companies that aim to migrate from legacy automation systems towards the Industry 4.0 paradigm. The aim of the proposed approach is to assess the profitability of the investment in advanced technologies for the decentralization of industrial automation control architectures, evaluating opportunities and mitigating the risks of migration from technical, operational, human and business perspectives. The methodology implements an iterative approach starting from the definition of the current business and operational status of the factory and the identification of business goals; progressing towards the identification and evaluation of possible migration paths; ending with the selection of the optimal one according to a cost-benefit analysis. The paper presents two exemplary applications in real industrial environments, developed in the scope of FAR-EDGE European Project.