Ka Shui: Digital Transformation

In June 2021, the head of the information technology department at Ka Shui Group, a Hong Kong–based original equipment and original brand manufacturing company, was asked by the group’s chief executive officer to evaluate whether Ka Shui Group should discontinue the Industry 4.0 program it had been using as road map for digital transformation. Ka Shui Group had launched the program in 2016 with the goal of creating a cyber-physical, connected workplace featuring digitized data transparency and connectivity, smart manufacturing and research and development, and self-monitoring and error-correction capabilities. However, the i4.0 initiative had yet to progress beyond this first stage over the last three years. The program’s cascading progress within Ka Shui Group was stagnant, and results were meagre. At the same time, stakeholders were getting restless. All these problems, along with lukewarm reactions from employees and questions from investors about the benefits of Industry 4.0, were forcing Ka Shui to consider whether it was necessary to discontinue the program and, if so, what direction it should take next.

<p align = justify>This case can be used as part of course modules on operations strategy, technology management strategy, or digital transformation at the senior undergraduate, graduate, and post-graduate levels. It can also be used for in-house management training to examine a company’s technology development and implementation strategy and identify ways to achieve its goals. This case offers students the opportunity to examine the dilemmas faced by a company undertaking a digital transformation of its original brand manufacturing business and to make forward-looking decisions to address these dilemmas. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>describe the challenges of implementing digitalization in an original brand manufacturing business;</li><li>explain the role of Industry 4.0 in an original brand manufacturing business, including its contributions and limitations; and</li><li>assess potential opportunities for reinvigorating a company’s original brand manufacturing business.</li></ul>

• Industry 4.0
• product innovation
• process innovation
• smart manufacturing