Artificial Intelligence in Manufacturing - Value Delivery

Sammanfattning: The manufacturing industry faces challenges resulting from technological development. Reports are claiming that incumbent firms push the development in various ways as a result of their market power. Artificial Intelligence (AI) is increasing in use, enabling new types of product and service offerings which allows and forces firms to innovate their business models but not least their operating models. In this abductive research study, employees from six manufacturing firms have been interviewed. By utilizing the Operational- & Business Model Alignment and the Nested Business Environment Framework, an answer to what the effects of AI-development are on value delivery in manufacturing firms has been achieved. Three categories have been identified where AI-development is currently happening in manufacturing firms: Servitization, Supply-Chain & Support Functions, and Smart Manufacturing. The three components of value delivery which are scale, scope, and learning were studied, and it was found that the effects on these following AI-development depend on the category and stage of transformation the category finds itself in. In identifying these effects it was found that the unconstrained growth associated with digital operating models incorporating AI is to a certain degree limited by the effects AI-development has on value delivery and consequently the operating model. This paper highlights the importance of understanding the transformation that value delivery undergoes as a consequence of AI-development. The findings aim to aid manufacturing firms in understanding this change process and what appropriate strategy to adopt in order to achieve the best possible long-term results for the business.