‘Lean 4.0’: How can digital technologies support lean practices?

Digital technologies, such as advanced analytics, autonomous vehicles or the Internet of Things, are often touted as means to substantially improve operations. While this potential has been frequently highlighted and evidenced from single case applications, we still lack a deeper theoretical understanding of the underlying mechanisms how digital technologies can support process improvement in general, and lean practices more specifically. In this paper, we use a qualitative study based on focus group design to understand how manufacturing and supply chain management professionals perceive the potential of digital technologies in support of lean practices. We identify eight digital waste reduction mechanisms that illustrate how digital technologies can support lean practices. These include a cluster of mechanisms that augment operational execution in terms of speed and precision of execution, as well as flexibility in space and time. Furthermore, we identify a second cluster of mechanisms that augment decision-making through visibility, feedback, engagement, and prevention. In terms of managerial implications, our findings provide firms with a structured approach how to identify those digital technologies that can most effectively support their respective process improvement activities.