Technology Project Portfolio Selection in Industry 4.0

Abstract

Industry 4.0 transformation is creating changing dynamics in business and becoming a highly important concept that requires the support of top management for projects and investment. As a result of transformation processes, Industry 4.0 develops more productive and continuous systems, and companies have been searching for the right adaptation of this transformation. In order to succeed in this Industry 4.0 transition, decision-making regarding the selection of profitable technology projects is a key point for companies. The proposed model incorporates two important goals: profit maximization by selecting technology projects and the development of simulation-based optimization with a three-step stage-gate model for technology project portfolio management under conditions such as resources, costs, and the probabilities of completion of stages and success. The stage-gate system contributes to the model development through the various steps from idea to launch and helps manage the Industry 4.0 transition process to improve effectiveness and efficiency.