State of the Smart Factory : Driving OEM Progress in the Smart Factory Era: A Case Study of an Industrial Supplier to the Motor Vehicle Industry

The concept of industry 4.0 has long been a topic of discussion, research, and cultural impact, it has also rapidly increased effectiveness, profitability, and growth for the involved parties. At the pinnacle of industry 4.0 smart factories have emerged as a concept, describing the factories of competitive manufacturing leaders who best utilize the advanced tools of the era. The journey toward progressing conventional factories, making them smart, requires collaboration with suppliers who are well-equipped to support this transition. Therefore, this thesis aims to take on a supplier perspective through the lens of strategy to gain a deeper understanding of how suppliers should act towards original equipment manufacturers (OEMs) in the smart factory era. Specifically, investigating how suppliers can seize business opportunities in the smart factory maturity (SFM) journey of OEMs. The study was conducted through a qualitative single case study performed with an industrial supplier towards OEMs in the motor vehicle industry (MVI). Data collection included performing semi-structured interviews with employees at the case company as well as observations such as break room discussions and visits at OEMs. Moreover, thematic analysis was carried out which resulted in three themes which deepens the understanding of the supplier’s role in the context. The discussion of the themes concludes that suppliers should: 1. Understand the state of the OEMs' smart factory journey, by identifying the OEMs SFM and what drives them forward. 2. Use the found enablers in their strategy to assist the journey, i.e. by developing strategic partnerships, expanding the software offering, establishing a smart factory vision, and changing the mindset towards solution selling. 3. Prepare for and manage the identified challenges of the smart factory era, which are factory legacy, new competency needs, cyber security, silo mindset, and change management. The research contributes to industry 4.0 matur